Can a SDIRA "Lend money to an LLC it is part of"?

[Daniel Dietz]

Hello All, 

I am *thinking* that this is a prohibited transaction, but thought I would check here and get some feedback. I was researching methods of partnering outside of SDRIAs and came across this idea. 

Say Partner #1 SDIRA contributed $1000 to a new LLC and Partner #2 used 'cash' for his $1000 contribution. They have '50-50' invested in the LLC. LLC now needs a loan for property #1. Can Partner 1's same SDIRA loan the money on either just it's half or the entire deal? It sounds like that would be 'self dealing' but was not sure. IF that is permissible, could it be an interest only loan?

Our goal is for Partner 1's SDIRA to provide, in some form - either capital contribution or lending, the down payment and Partner 2 to do all acquisition, management, PM, book work etc.... with as little 'cash out of pocket' as possible. 

Thanks, Dan Dietz