Hardship taken after other distibs & loans

[BG5150]

I know a hardship should only be taken after all distributions and loans available to a person are taken.

However, I've read that a loan doesn't have to be taken if it creates additional hardship. Where is that stated in the regs or guidance?

And secondly, what if a loan wouldn't cause add'l hardship, but one is already taken, yet more is available. For example, a person took a $5,000 loan last year for 5 years. Now she wants a hardship. However, since the loan was taken, an additional $4,000 has been added to her account. Would she have to refinance the existing loan for an additional $2,000 before a hardship could be taken? Or does the existence of the first loan satisfy the provision that all distribs & loans must be taken before a hardship can be done?

[Belgarath]

As to the first question, see 1.401(k)-1(d)(3)(iv)(D).

As to the second, for a quick off the cuff response without really thinking much about it, I'd say an additional loan would be required.