Legal analysis: Only if the funds borrowed from other enterprises are re-lent to the borrower for profit and the borrower knows or should know in advance, can the loan contract be deemed invalid

Legal basis: " Article 14 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases stipulates that only if the funds borrowed from other enterprises are re-lent to the borrower for profit, and the borrower knows or should know in advance, it can be determined. The loan contract is invalid.