§ 5.4 named the loan or rental of a firearm as a carve-out from the residency prohibition. The allowance itself is narrower than that framing suggests, and it comes with conditions that keep most of the counter regime in place. A licensee may lend or rent a firearm to any person for temporary use off the licensee’s premises for lawful sporting purposes — provided three things hold. Delivery must not be prohibited by § 478.99(b) or § 478.99(c), so the age thresholds and the prohibited categories from Chapter 5 apply in full. The licensee must comply with § 478.102, so the background check runs as it would on a sale. And the loan or rental must be recorded in the records required under subpart H.

Read together, that means a loan is not a lighter-touch transaction. What the allowance removes is the residency requirement and the sale itself; what it leaves is the check, the prohibited-person rules, the age tiers and the record. A dealer who thinks of a rental as something short of a transfer, and skips the check accordingly, has misread which part of the regime the carve-out reaches.

A different provision covers organizations rather than licensees, and it points the other way. A club, association, or similar organization that temporarily furnishes firearms — whether by loan, rental or otherwise — to participants in a skeet, trap, target or similar shooting activity, for use at the time and place the activity is held, does not by that fact alone become engaged in the business of a dealer or as engaging in firearms transactions. The regulation qualifies that with the phrase unattended by other circumstances, and it does not enumerate what those circumstances are — so the safe reading is the narrow one: the conclusion covers the shooting activity in itself and says nothing about whatever else the organization may be doing. Where it does hold, the licensing and recordkeeping requirements of this part do not apply to that temporary furnishing.