Q: I occasionally make business loans to sole proprietors. Do I have to provide them with a privacy notice?
A: Although a sole proprietor is an individual, if the sole proprietor obtains a loan from you for business purposes he or she is not a “consumer” for purposes of the Privacy Rule. Therefore, you do not have to provide any privacy notices to the sole proprietor.
This can be found in FAQ B.2. of the Regulation P FAQs. The FAQs can be found at http://www.federalreserve.gov/regulations/cg/faq.pdf