Use an LLC loan agreement template to create a detailed agreement regarding the Loan your company takes or gives. Specifically designed for limited liability companies, this template offers a comprehensive framework to formalize lending arrangements, safeguarding the interests of both parties.
This LLC Loan Contract (“Agreement”) dated on the (Date) is between [Borrower.FirstName] [Borrower.LastName] of (Borrower.LLCName) with the mailing address [Borrower.Email] and [Lender.FirstName] [Lender.LastName] of [Lender.Company] with the mailing address of [Lender.Email] .
In consideration of the Lender loaning the Borrower certain monies (“Loan”), and the Borrower repaying the Loan to the Lender following the terms of the Agreement.
In this section, ensure to add the loan amount and whether interest will apply to the principal amount.
The Lender agrees to lend $(Amount) (“Principal Amount”) to the Borrower under the following terms:
No Interest on Principal Amount
Interest Rate of (Percentage)% compounded per:
The Borrower will receive the Loan on the (Loaned.Date)
Explain how the repayment structure works. Consider whether it’s monthly installments, whether there are any late fees or interest, the date when the payment is due, and how they should pay it.
The total balance of the Loan, including any interest, fees, or penalties, is due in:
A Lump Sum – Borrower must pay back the Loan in a lump sum payment, in the total amount of $(Amount), by the (Due.Date).
Installments – Borrower shall pay the Loan and its fees, penalties, and interest totaling installment amounts of $(Amount), with the first payment on the (FirstPayment.Date), and the remaining payments as:
Weekly installments, due on the (Day) of the week
Monthly installments, due on the (Number) of each month
Quarterly installments, due on the (Day) every three months
The Loan is due, with any outstanding balances settled, by the (Final.LoanDate). Any payment that is more than (Number) days late after its due date, according to the above terms, will incur an occurrence/daily late fee of $(Amount)/interest rate of (Percentage)% on the outstanding balance.
Not every LLC loan agreement requires security, but it’s a good idea to ensure the Lender is protected. As LLC partners can’t be held personally responsible for any company debt, this Security will ensure you don’t lose any money if the LLC can’t repay the Loan.
This Agreement will be:
Unsecured – There is no security provided in the Agreement.
Secured – The following property is supplied as Security for the Agreement: (Property.SecurityDescription) (“Security”)
This Security will transfer to the possession and ownership of the Lender should the Borrower default on this Agreement. Until the Loan is repaid in full, the Borrower may not sell, transfer, or otherwise exchange the Security without the written permission of the Lender. Should this term be violated, the Lender may declare all sums due under the Agreement immediately due and payable. Should the market value of the Security not equal or exceed the Loan, then the Borrower remains liable for the outstanding balance, which will accrue interest at the maximum rate allowable by law.