Very odd and tough situation for me, need some guidance for sure!

Right, you are the one who sees her. How will you handle things with her when you do see her?

Glad to have found this site! Thank you for anyone reading.

I have a unique and precarious situation that I definitely need some help with.

My husband and I have been married for 5 years now and we have a wonderful relationship. No children and we are in deed best friends.
We threw a party at our place and had invited close friends and family, there was drinking involved of course.
My husband comes and finds me chatting with some friends and says quietly so no one will hear "We need to talk right now! We have a problem." So of course we head off to chat.
He tells me that my good friend(female) has just pulled him aside and confessed that she is madly in love with him and has been since she met us. I of course am shocked and speechless.
My husband and I talked about it for a bit, and she also told him that her friends all think he's just wonderful and would be perfect for her. (If I only wasn't in the way essentially)
Now my husband is a very suave and handsome man, he is a ladies man and always has been. He also treats woman right and likes to make them feel good and sexy. No matter the woman, he treats them all this way, but I think particularly tries to be that way even more so with the less than perfect woman. So the heavier or not so beautiful. He likes to make woman feel good about themselves. This friend is in that category, she is single and always has been, mid thirties and not your typical attractive lady.
Now a little back story.
This is not a long friendship, only about 1.5yrs old now, but it was a fast friendship between the two of us. I do not make female friends easily and of course I was thrilled to have a woman in my life I thought "got" me.
We met because I am in business with her mother, her Mother and I work closely together and the friend works for her Mother. So we see each other almost on a daily basis. This friend also has invested in our business monetarily.... We have debt to her.

So this presents a less than ideal situation and I am unsure on how to proceed.

Oh and this friend does not know that I know what she told my husband yet. This just happened and I am still trying to decide the best plan.

You might feel the need to disengage from that whole group. How serious of a loss would that be for you?

you can be friendly and ccompassionate if you choose, but somewhat distant and even more compassionate to yourself. Try to disengage, at least in your mind, if hubby is being good.

The group wouldn't be a loss, the girlfriend is a loss because she's ghr first one I've let into my life in a very long time. The reason being is that girls do things like this!!! They get all crazy and emotional over nothing. But on my compassionate and less irritated side, I do feel bad for her and understand. She has everything in the world money could buy, but is alone and doesn't feel she will ever have a man that she is physically attracted to and is a good man.
So of course she would feel this way about my Husband, he is all those things. But if he were single, she would never be in his line of site.... So I feel she has taken his flirty and physical personality out of context and taken advantage of our comfort around her. In being able to laugh and flirt and not be worried about high school crap like this.
Sorry off on another rant of sorts. It's just all a lot and putting it on paper helps.