** This is a standard business loan document. Please consult with an attorney on your own unique circumstances or requirements. **
BUSINESS LOAN AGREEMENT
This Business Loan Agreement (“Agreement”) is made and entered into on [Date], by and between:
Lender: [Lender’s Name], a [Lender’s Legal Form, e.g., Corporation, LLC] with its principal office located at [Lender’s Address].
Borrower: [Borrower’s Name], a [Borrower’s Legal Form, e.g., Corporation, LLC] with its principal office located at [Borrower’s Address].
RECITALS
WHEREAS, the Lender agrees to loan the Borrower the principal sum of [Loan Amount] under the terms and conditions stated herein;
NOW, THEREFORE, in consideration of the mutual covenants and promises herein contained, the parties hereto agree as follows:
1. Loan Amount and Disbursement
1.1 Loan Amount: The Lender agrees to lend the Borrower the principal sum of [Loan Amount].
1.2 Disbursement: The Lender shall disburse the Loan Amount to the Borrower on [Disbursement Date], subject to the terms and conditions of this Agreement.
2. Interest Rate
2.1 Interest Rate: The Loan Amount shall bear interest at the rate of [Interest Rate]% per annum, calculated on a [daily/monthly] basis.
2.2 Interest Calculation: Interest shall be calculated on the outstanding principal balance from the date of disbursement until the Loan Amount is fully repaid.
3. Repayment Terms
3.1 Repayment Period: The Borrower agrees to repay the Loan Amount in [number] equal installments of [Installment Amount] each, beginning on [First Payment Date] and continuing thereafter on the [day] of each month.
3.2 Late Payment: A late payment fee of [Late Fee Amount] shall be charged for any installment not paid on its due date.
3.3 Prepayment: The Borrower may prepay the Loan Amount, in whole or in part, at any time without penalty. Any prepayment shall be applied to the outstanding principal balance.
4. Security
4.1 Collateral: As security for the repayment of the Loan Amount, the Borrower hereby grants to the Lender a security interest in the following collateral: [Description of Collateral].
4.2 Perfection of Security Interest: The Borrower agrees to execute and deliver all necessary documents to perfect the Lender’s security interest in the Collateral.
5. Representations and Warranties
5.1 The Borrower represents and warrants that it is duly organized, validly existing, and in good standing under the laws of the jurisdiction of its formation.
5.2 The Borrower has the authority to enter into this Agreement and to perform its obligations hereunder.
6. Covenants
6.1 Use of Funds: The Borrower agrees to use the Loan Amount solely for the purpose of [Purpose of Loan].
6.2 Financial Statements: The Borrower shall provide the Lender with periodic financial statements and reports as requested by the Lender.
7. Default
7.1 Events of Default: The following shall constitute an event of default (“Event of Default”) under this Agreement:
- Failure to make any payment when due;
- Breach of any representation, warranty, or covenant contained in this Agreement;
- Insolvency, bankruptcy, or dissolution of the Borrower.
7.2 Remedies: Upon the occurrence of an Event of Default, the Lender may declare the entire outstanding principal and interest immediately due and payable and may pursue all available legal remedies.
8. Miscellaneous
8.1 Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of [State], without regard to its conflict of laws principles.
8.2 Amendments: No amendment or modification of this Agreement shall be valid unless in writing and signed by both parties.
8.3 Assignment: Neither party may assign its rights or obligations under this Agreement without the prior written consent of the other party.
8.4 Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements or understandings, whether written or oral.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.
Lender:
[Name and Title]
[Lender’s Name]
Borrower:
[Name and Title]
[Borrower’s Name]
