Most advice is against loaning relatives money because money is an emotional subject that easily can become difficult. Usually if the person is credit worthy, they can borrow what they need to get started in a business. If the business has been going for awhile and does not need the money for resuscitation, then it is a matter of judgment regarding risk. Problems with repayment and the need for the money to be returned in an untimely manner can occur. If you choose to loan a relative a sum of money it is a good idea to set the agreement in writing, with specific terms of repayment or interest in the company.