Business Borrowing Lending Contract
Business Loan Contracts San Diego
California Business Loan Contracts San Diego Summary
Whether strategically borrowing or investing by lending, solid loan contracts should accompany any business lending transactions. Proper loan documents should not only memorialize the principal loaned and the terms of repayment, but also provide for security against collateral and any personal guarantees of payment and performance.
San Diego Corporate Law provides its clients with drafting, review, and negotiation of business loan documents, including:
- General Loan Agreements;
- Term Loan Agreements;
- Revolving Loan Agreements;
- Hybrid Term and Revolving Loan Agreements;
- Business Loan Modification Agreements;
- Security Agreements;
- Subordinated Security Agreements;
- Guarantee of Completion and Performance Agreements;
- Guarantee of Payment and Performance Agreements
- Guaranty by Shareholder, Partner, or Member Agreements;
- Basic Demand Notes;
- Fixed and Variable Interest Promissory Notes;
- Convertible Secured Promissory Notes;
- Notes Secured by Stock or Other Securities;
- Note and Warrant Purchase Agreements; and
- Convertible Debentures.
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Michael J. Leonard helped us obtain our 501(c)(3), created our bylaws, and completed all of the necessary forms to establish a tax exempt status for our non-profit foundation. He was professional, quick, and great to work with. Mr. Leonard is also very connected in the community and has referred us to useful contacts.
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Michael J. Leonard at San Diego Corporate Law has provided GWR valuable assistance and professional advice. As a San Diego based high tech equipment manufacturer, we appreciate that we never have to waste his or our time explaining the engineering or scientific details of our situation as his strong, hands on physics and engineering background is invaluable. We are well protected with Mike looking out for our interests.
Richard Reineman, GWR Instruments, Inc.
In 2009 San Diego Corporate Law converted my Sole Propriety Engineering Company into a “S” Corporation. My experience was painless and Mr. Leonard has done an excellent job staying in contact and continues to be a great advisor. San Diego Corporate Law comes highly recommended.
Curtis Patterson, P.E., Patterson Engineering, Inc.
Michael J. Leonard at San Diego Corporate Law is not your typical attorney experience. Michael puts his full attention into understanding your needs and provides the best solution to meet your goals. I highly recommend San Diego Corporate Law to any of my friends and associates.
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Lidija Skolnija, anaZana, Inc.
I was recommended to Michael to help me set up a new corporation I was starting. The advice he gave me was great, and I eventually hired his services to create the agreements and contracts between myself and my business partner. Throughout the process he guided me and asked very detailed questions. I felt that he had my back and my best interest at heart. Looking back now, the contracts he wrote have saved me close to $40,000 in money that I would have otherwise had to pay. Thank you Michael. Everyone should follow your standards.
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We hired San Diego Corporate Law to help us establish our business in San Diego. In the initial stages of setting up our business and transitioning to California, we were frequently out of town. During this time, Michael answered questions promptly and thoroughly by phone and email. He went above and beyond to keep us on deadline for our aggressive schedule. I would not hesitate to recommend San Diego Corporate Law to another business owner.
Alicia Sorber-Gallegos, Two Men and a Truck
Having no prior experience with business law, I approached Michael to help me set up an LLC for my new company and help me review my legal disclaimers. Michael was very straightforward, honest and helpful. He took the time to explain every detail and answer all of my questions. His work was very diligent and completed exactly by the deadline promised. Michael and San Diego Corporate Law hold my highest recommendation!
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John Copyak, Clean USA Power, Inc.
San Diego Corporate Law helped me set up MGIV Inc and get established as an S-corp in 2013. I was a one man show and didn’t have a substantial amount of money to spend to get started. I was in the process of filing for a LLC through Legalzoom.com when something didn’t feel right. I picked up the phone and asked Michael if he was available to help. This was my first business so I knew nothing about filing for a corporation or legally establishing a business. Using his knowledge and expertise he coached me toward filing for an S-corp instead of an LLC. It saved the corporation $800 in 2013 and positioned it for success based on the MGIV Communication Consulting model. I find comfort knowing that my business is in good hands. Michael is a great resource and very personable so working with him is convenient and affordable! I recommend San Diego Corporate Law to anyone needing legal assistance with their business!
Michael Gordon IV, MGIV, Inc.
When I needed to move my business from an office suite to a brick and mortar location, San Diego Corporate Law was instrumental in ensuring that the lease provisions were in my best interests. The specialized skills that Michael and his team possess, the fair and transparent fee structure, and their professional yet low pressure consultation process are the reasons why I will retain their services in the future.
Scott Weathers, Alpha Graphics La Jolla
Michael J. Leonard at San Diego Corporate Law not only helped us establish our small business in San Diego, but he helped us to solidify our partnership to avoid any gray areas as we are a family-run business. Michael was easy to work with, knowledgeable, responsive, and professional, and we will continue to use him as our company lawyer moving forward.
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Andrey Kamogari, Kamo Housing
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Esther Hemmen, Mending Matters
San Diego Corporate Law has been a crucial partner for Little Black Diamond. Whether it’s routine incorporation paperwork or complex employment law, Michael is always very responsive and available to help handle our legal issues. He takes the time to understand your business and the unique issues that surround it in order to provide accurate and timely advice that considers the best interest of your business. San Diego Corporate Law is a true partner for any business.
Adam Rosenberg, Little Black Diamond, LLC
California Business Loan San Diego Details
Business Loan Contracts Overview
If you are borrowing from a bank or large institutional lender, the lender will likely have standard loan documents it insists upon using for its transactions. For very complex transactions with these lenders, or for borrowing or lending with an individual or smaller lender, custom loan documents drafted by an attorney should be utilized. Attorneys’ fees are customarily borne by the borrower in these transactions.
Basic Business Loan Provisions
The basic provisions in any business loan contract include (1) an agreement to lend and borrow money, for a fixed term or as a revolving line of credit; (2) the conditions precedent which the borrower must satisfy before the loaned funds are disbursed to the borrower; (3) representations and warranties by the borrower; (4) affirmative and negative covenants from the borrower for topics such as the borrower’s collateral, use of the loaned funds, and legal compliance issues; and (5) provisions for enforcement of the agreement should the borrower default on the loan.
If a borrower uses collateral to secure a loan from a lender, a security agreement or security clause within a loan agreement must provide for the lender’s right to gain title to the collateral should the borrower default on the loan. At a minimum, a security agreement or security clause within a loan agreement must (1) grant the lender a security interest in the collateral; (2) define the obligations which are being secured with the collateral; and (3) identify the collateral with reasonable specificity. The security agreement or contract containing a security clause must also be signed by the borrower to be enforceable against the borrower’s collateral.
A loan guaranty allows a lender to seek repayment of a business loan from the persons or business entities that have guarantied the loan on behalf of another person or business entity. Guaranty agreements are commonly required of shareholders or other business owners seeking loans on behalf of unseasoned or business entities or business entities with less than acceptable credit. Loan guaranties may be used absent or in conjunction with a security agreement or security clause within a loan document and, like the verbiage securing a loan with collateral, loan guaranties may be made with separate guaranty agreements or with guaranty clauses within a loan document.
Promissory Notes and Other Debt Instruments
Promissory notes are generally only one part of a larger package of business loan documents. At a minimum, promissory notes should contain (1) the identity of the debtor and creditor; (2) the principle amount; (3) the interest rate and how the interest rate is calculated; and (4) the dates when principle and interest are payable and what recourse is available to the lender should the borrower default on one or more payments.
Need help with your contracts?
Send us an Email or call us at 858.483.9200