Would it still be legal for the firearm to be loaned even if the it was purchased in another state from a private party? Also i am confused how it is low risk since if the serial number is looked up couldnt it be traced back to the other state without anything showing it was transferred here? Even if the gun was say 10 years old and was purchased new in florida, wouldn't i have to make up a story about how i purchased it? Because upon researching the ATF clearly specifies that private party firearm transactions across states lines is not legal.
Or maybe i have it wrong. I am slightly confused. There is an atf form when guns are purchased new from an FFL but is this kept on file? There is no national gun registry or any long gun registry for that matter anywhere in the US correct?
What is with all this worry about tracing?
Neither the feds nor the states know where guns are for sure once they leave a dealer. There are many many ways for guns to lawfully move around in intrastate and interstate commerce without leaving a trail as to their whereabouts.
I gave a few ways in an earlier post. Here's another.
You list the gun on a web site that does not actually complete the transaction. Like facebook, and sell it to someone in another state. You ship the gun to the out of state dealer yourself. (perfectly legal).
The dealer legally transfers the gun to the buyer.
Your state still thinks you own the gun. The ATF if they traced it would stop at you. And if you were a freedom loving guy who threw away all records of the sale, they couldnt' find out where the gun went unless they contacted the shipping company and had them search their records for any guns you've shipped.
So to get back to your original question. An interstate loan is perfectly totally legal. I'm not sure what you mean by "Would it still be legal for the firearm to be loaned even if the it was purchased in another state from a private party?"
In this sentence you use the words loan and purchase. Its got to be one or the other. Not both. I'll assume you meant to write "even if it was loaned from a private party in another state".
The answer is still Yes. ((Edit - See kevlar's more nuanced explanation below)
Again, don't take my word for it.
See
https://www.atf.gov/content/firearms-frequently-asked-questions-unlicensed-persons
A person may loan or rent a firearm to a resident of any State for temporary use for lawful sporting purposes, if he does not know or have reasonable cause to believe the person is prohibited from receiving or possessing firearms under Federal law.