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If go to a book that you have bought, there will be an icon at the top of the top of the page that says Loan this book (or something to that affect). By clicking the icon you are able to enter the email address you wish the book to be delivered to. The person reciving the book will then have to accept the loan and they may then download it. From what I understand the book will automatically be returned to your kindle 14 days after the loan is accepted.
If there is no loan icon at the top page of a book you have bought, then it is unable to be loaned out. The icon will be under the date you ordered the book.
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