I don't agree with @Anonymous based on your facts.
Borrowing $$ to fund an interest in a business activity, is deductible based on the tracing rules.
See the attached instructions to Schedule E and in particular page E-10 line 28; debt financed acquisition. Here you borrowed $$ to acquire an interest in a business.
For the activity in which you materially participate, the interest expense will be reported on Schedule E on a separate line titled "Business Interest".
For the passive activity, the interest expense will be included in the passive activity amount reported on form 8582.