If you are just doing a one-off loan, you don’t need to be overly concerned about Rule 506(b) — especially if your investor is accredited. With a single investor, you may also want to consider structuring this as a joint venture (where everyone stays actively involved in generating their own profits).

You will generally start thinking about structuring a securities offering when you are either repeatedly borrowing from private investors and your business depends on it, or you are selling passive interests in a company to multiple investors.