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Topstitch the loop piece. I used a large zig-zag stitch (my camera doesn't show this close of detail). Sew a button on the front of the bag, then take the band and pin it on the back, using the button on the front to gauge the placement of the loop.

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Burdastyle

http://burdastyle.com//techniques/the-itty-bitty-bag/technique_steps/21