(1) Private lending refers to a civil act in which one party lends a certain amount of money to the other party between natural persons or between natural persons and enterprises (other organizations), and the borrower repays the loan at maturity and pays interest as agreed.

(2) The crime of illegal business operation refers to illegal business operation, which involves operating franchised, monopolized or other restricted goods without permission, buying and selling import and export licenses, import and export certificates of origin, business licenses or other approval documents stipulated by laws and administrative regulations, engaging in other illegal business activities, disrupting market order and having serious circumstances.

To sum up, there is a clear line between private lending and illegal business.

Article 225 of the Criminal Law of People's Republic of China (PRC): Whoever, in violation of state regulations, commits one of the following illegal business operations and disrupts the market order, if the circumstances are serious, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also, or shall only, be fined not less than one time but not more than five times the illegal income; If the circumstances are especially serious, he shall be sentenced to fixed-term imprisonment of not less than five years, and shall also be fined not less than one time but not more than five times for illegal gains or confiscation of property:

(a) operating a franchise or monopoly commodity or other commodities whose operation is restricted by laws and administrative regulations without permission;

(2) buying and selling import and export licenses, import and export certificates of origin and other business licenses or approval documents stipulated by laws and administrative regulations;

(three) without the approval of the relevant competent departments of the state, illegally engaged in securities, futures, insurance business, or illegally engaged in fund payment and settlement business;

(four) other illegal business activities that seriously disrupt the market order.