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I have to agree that it's a bad idea to do business with friends. I don't know what the project entails but it could present problems with control as well. Not unlike the current TARP situation on Wall Street, if this wealthy shareholder lends the corporation money, she could feel entitled to control the project because she is providing the money and the board may feel obligated to agree.
You say that the amount is relatively small - with that in mind I don't think the savings you may realize is worth the potential risk to the relationship with your shareholder.
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I agree with WAB that borrowing money from a SH for a capital project could also present control problems. The SH might want a say in how "her" money is spent. She might want to see contractor bids, have a say in deciding what contractor the project is given to, see and OK invoices for the work before they are paid, etc. Unless she is a BM or is on a committee for the project, there are aspects of this that she shouldn't be involved in. There are many ways the relationship between coop and SH could suffer in this situation, and the project could suffer too.
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