Loan has long been established as a verb, especially in business circles (loan the firm some money), but lend is considered preferable by many careful writers and speakers: "I refused to lend (not loan) him my car for the evening." Loan (not lend) should be used as a noun. If you prefer to use lend rather than loan as a verb (perhaps because "Distance loans enchantment" sounds odd), remember that the past tense and past participle are lent: "The bank lent him money yesterday." "The bank has lent him money many times."
Dictionary of problem words and expressions. Harry Shaw. 1975.