Private Loan vs. Gift

[Talford Thompson]

My parents are willing to help me finance my first investment. However, they don't want to incur any additional taxes and thus could only offer $14k/each this year under the Gift Tax exemption rules. My question is: If investors can invest as much money as they want in a particular venture, wouldn't this situation allow me to bypass the gift tax if I take them on as partners? Just not clear on the distinction between a gift & private loan in this scenario. Any clarification or insight is appreciated! Thanks, T.J.