Corporate Resolution for EIDL Loan
What this document covers
The Corporate Resolution for EIDL Loan is a legal document that allows a corporation to formally record resolutions made by its board of directors or shareholders. This form is specifically tailored for corporations seeking to document decisions regarding an Economic Injury Disaster Loan (EIDL). Unlike other resolutions, this form focuses on the corporate decision-making process concerning loan approvals, ensuring that all necessary parties are in agreement and that the corporation operates within legal frameworks.
Main sections of this form
- Identification of the corporation and the specific resolution being adopted.
- Date of the meeting where the resolution was approved.
- Signatures of the directors or shareholders who adopted the resolution.
- Certification by the Secretary of the corporation confirming the adoption of the resolution.
When this form is needed
This form is used when a corporation needs to document a decision regarding an EIDL loan. Common scenarios include when the board of directors or shareholders are approving the terms and conditions for the loan, agreeing to provide collateral, or authorizing specific individuals to act on behalf of the corporation in loan negotiations. It helps maintain a clear record for future reference and ensures compliance with corporate governance rules.
Who this form is for
- Corporation directors and shareholders involved in the decision-making process.
- CFOs or finance officers responsible for managing corporate loans and financial obligations.
- Corporate secretaries tasked with maintaining proper corporate records.
How to complete this form
- Identify the corporation's name and the specific resolution to be adopted.
- Enter the date of the meeting during which the resolution is approved.
- Have all relevant directors or shareholders sign the document.
- Ensure the Secretary certifies the resolution by signing and dating the form.
- Retain a copy of the resolution in the corporation's official records for future reference.
Does this document require notarization?
This form does not typically require notarization unless specified by local law. It is advisable to check with your stateâs requirements to ensure compliance.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Mistakes to watch out for
- Not including all necessary signatures from directors or shareholders.
- Failing to date the resolution correctly during the meeting.
- Using vague language that does not clearly specify the resolution being adopted.
Benefits of completing this form online
- Convenience of accessing and downloading the form from anywhere at any time.
- Editable templates that allow customization to fit specific needs.
- Reliable and legally compliant documents drafted by licensed attorneys.
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FAQ
Subject to single audit: Loans provided to nonprofits under the EIDL program are direct loans from SBA; as a result, they are considered federal financial assistance and are subject to Single Audit.
Business entities normally eligible for the EIDL program are eligible, including sole proprietors, independent contractors, and private, nonprofit organizations. Agricultural enterprises are not eligible.
To qualify for the full $10,000 targeted EIDL grant, a business must: Be located in a low-income community, and. Have suffered an economic loss greater than 30%, and. Employ not more than 300 employees.
What loan amounts require collateral? EIDL loans under $25,000 are considered unsecured and do not require any collateral. EIDL loans over $25,000 will require collateral. The SBA secures collateral by filing a blanket UCC-1 lien on your business.
What loan amounts require collateral? EIDL loans under $25,000 are considered unsecured and do not require any collateral. EIDL loans over $25,000 will require collateral. The SBA secures collateral by filing a blanket UCC-1 lien on your business.
Approximately 95% of disaster loans are processed via Phase I. The Phase processing determines the amount of disaster funding you are eligible to receive.Gross Profit ÷ 2 = maximum loan amount You Gross Profit is Annual Revenues less Cost of Goods Sold.
All borrowers of EIDL loans are required to obtain the SBA's approval of the sale of their business. This obligation includes asset sales for EIDLs over $25,000, since they require collateral. All EIDLs must be repaid at the time of the business sale, but they can be paid from the proceeds of the sale.
Credit History Applicants must have a credit history acceptable to SBA. Repayment Applicants must show the ability to repay all loans. Collateral Collateral is required for physical loss loans over $10,000 and all EIDL loans over $5,000. SBA takes real estate as collateral when it is available.
You must have fewer than 500 employees. Certain types of businesses are prohibited. Loans are for a term of 30 years. Loan amounts have a cap. Collateral is required for loans over $25,000. EIDL loan recipients cannot change their business structure while the loan is outstanding.
