Yes, according to Section 467(e)(3): Section 467 interest is treated as interest for all purposes of the Internal Revenue Code. But interest is specifically excluded from earned income (IRS Pub 596 (EITC) Income That Is Not Earned Income), ie: interest is passive income.
The IRS instructions for Form 1065 Partnership Income specifically state that interest on notes or accounts receivable is NOT included as net earnings from self-employment for General Partners.
Bottom line: Interest income is reported to the partners on Schedule K-1 Box 6, and you will need to report this income on your personal tax return. But that amount should not be included on Schedule SE in the calculation of self-employment tax.
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