Can anyone provide a citation which indicates that loans are permitted from a 403(B)(7) arrangement? I understand that the IRS has ruled privately on this issue, but do not have a PLR cite. Thanks

There is a private letter ruling, Private Letter Ruling 8906064 (November 18, 1988). However, there is even better authority on this issue, namely, the examination guidelines in Announcement 95-33, 1995-19 I.R.B. 14 (5/8/95).