Question About Lending Laws Regarding Private Loans

[Mindy Jensen]

So let's say I have $X to lend. I've been happily lending it out at 10% with no points. (And no, I'm not looking for new borrowers at this time.)

If a friend has his own lending business, where he is lending at 12% + 4 points, that would obviously be more. Could I lend him my money to lend out at high rates? Does he have to be licensed or since he is also doing private loans, could he just use my cash to fund his business, and I am just lending him money, and no one needs to be licensed?

Thank you. @Jay Hinrichs