SBA Promissory Note for Economic Injury Disaster Loan EIDL

image

By Murray Wennerlund published 6-24-2020
Contribute $3.00 | Print | Tag: EIDL

SBA Loan LOAN AUTHORIZATION AND AGREEMENT LAA Promissory Note agreement for Economic Injury Disaster Loans

NOTE

A PROPERLY SIGNED NOTE IS REQUIRED PRIOR TO ANY DISBURSEMENT

CAREFULLY READ THE NOTE: It is your promise to repay the loan.

  • The Note is pre-dated. DO NOT CHANGE THE DATE OF THE NOTE.

  • LOAN PAYMENTS will be due as stated in the Note.

  • ANY CORRECTIONS OR UNAUTHORIZED MARKS MAY VOID THIS DOCUMENT.

SIGNING THE NOTE: All borrowers must sign the Note.

  • Sign your name exactly as it appears on the Note. If typed incorrectly, you should sign with the correct spelling.

  • If your middle initial appears on the signature line, sign with your middle initial.

  • If a suffix appears on the signature line, such as Sr. or Jr., sign with your suffix.

  • Corporate Signatories: Authorized representatives should sign the signature page.

 

U.S. Small Business Administration

NOTE

(SECURED DISASTER LOANS)

Date: 05.10.2020

Loan Amount: $1,200,000.00

Annual Interest Rate: 3.75%

SBA Loan # 1234567890 Application #0987654321

 

  1. PROMISE TO PAY: In return for a loan, Borrower promises to pay to the order of SBA the amount of one million two hundred thousand 00/100 Dollars ($1,200,000.00), interest on the unpaid principal balance, and all other amounts required by this Note.

  2. DEFINITIONS: A) "Collateral" means any property taken as security for payment of this Note or any guarantee of this Note. B) "Guarantor" means each person or entity that signs a guarantee of payment of this Note. C) "Loan Documents" means the documents related to this loan signed by Borrower, any Guarantor, or anyone who pledges collateral.

  3. PAYMENT TERMS: Borrower must make all payments at the place SBA designates. Borrower may prepay this Note in part or in full at any time, without notice or penalty. Borrower must pay principal and interest payments of $5,558.00 every month beginning Twelve (12) months from the date of the Note. SBA will apply each installment payment first to pay interest accrued to the day SBA receives the payment and will then apply any remaining balance to reduce principal. All remaining principal and accrued interest is due and payable Thirty (30) years from the date of the Note.

  4. DEFAULT: Borrower is in default under this Note if Borrower does not make a payment when due under this Note, or if Borrower: A) Fails to comply with any provision of this Note, the Loan Authorization and Agreement, or other Loan Documents B) Defaults on any other SBA loan C) Sells or otherwise transfers, or does not preserve or account to SBA's satisfaction for, any of the Collateral or its proceeds D) Does not disclose, or anyone acting on their behalf does not disclose, any material fact to SBA E) Makes, or anyone acting on their behalf makes, a materially false or misleading representation to SBA F) Defaults on any loan or agreement with another creditor, if SBA believes the default may materially affect Borrower's ability to pay this Note G) Fails to pay any taxes when due H) Becomes the subject of a proceeding under any bankruptcy or insolvency law I) Has a receiver or liquidator appointed for any part of their business or property J) Makes an assignment for the benefit of creditors K) Has any adverse change in financial condition or business operation that SBA believes may materially affect Borrower's ability to pay this Note L) Dies M) Reorganizes, merges, consolidates, or otherwise changes ownership or business structure without SBA's prior written consent or, N) Becomes the subject of a civil or criminal action that SBA believes may materially affect Borrower's ability to pay this Note.

  5. SBA'S RIGHTS IF THERE IS A DEFAULT: Without notice or demand and without giving up any of its rights, SBA may: A) Require immediate payment of all amounts owing under this Note B) Have recourse to collect all amounts owing from any Borrower or Guarantor (if any) C) File suit and obtain judgment D) Take possession of any Collateral or E) Sell, lease, or otherwise dispose of, any Collateral at public or private sale, with or without advertisement.

  6. SBA'S GENERAL POWERS: Without notice and without Borrower's consent, SBA may: A) Bid on or buy the Collateral at its sale or the sale of another lien holder, at any price it chooses B) Collect amounts due under this Note, enforce the terms of this Note or any other Loan Document, and preserve or dispose of the Collateral. Among other things, the expenses may include payments for property taxes, prior liens, insurance, appraisals, environmental remediation costs, and reasonable attorney's fees and costs. If SBA incurs such expenses, it may demand immediate reimbursement from Borrower or add the expenses to the principal balance C) Release anyone obligated to pay this Note D) Compromise, release, renew, extend or substitute any of the Collateral and E) Take any action necessary to protect the Collateral or collect amounts owing on this Note.

 

Page 2 of 3

SBA FORM 147 B (5-00)

Doc # L-09-87654321-01

SBA Loan #1234567890

 

 

  1. FEDERAL LAW APPLIES: When SBA is the holder, this Note will be interpreted and enforced under federal law, including SBA regulations. SBA may use state or local procedures for filing papers, recording documents, giving notice, foreclosing liens, and other purposes. By using such procedures, SBA does not waive any federal immunity from state or local control, penalty, tax, or liability. As to this Note, Borrower may not claim or assert against SBA any local or state law to deny any obligation, defeat any claim of SBA, or preempt federal law.

  2. GENERAL PROVISIONS: A) All individuals and entities signing this Note are jointly and severally liable. B) Borrower waives all suretyship defenses. C) Borrower must sign all documents required at any time to comply with the Loan Documents and to enable SBA to acquire, perfect, or maintain SBA's liens on Collateral. D) SBA may exercise any of its rights separately or together, as many times and in any order it chooses. SBA may delay or forgo enforcing any of its rights without giving up any of them. E) Borrower may not use an oral statement of SBA to contradict or alter the written terms of this Note. F) If any part of this Note is unenforceable, all other parts remain in effect. G) To the extent allowed by law, Borrower waives all demands and notices in connection with this Note, including presentment, demand, protest, and notice of dishonor. Borrower also waives any defenses based upon any claim that SBA did not obtain any guarantee did not obtain, perfect, or maintain a lien upon Collateral impaired Collateral or did not obtain the fair market value of Collateral at a sale. H) SBA may sell or otherwise transfer this Note.

  3. MISUSE OF LOAN FUNDS: Anyone who wrongfully misapplies any proceeds of the loan will be civilly liable to SBA for one and one- half times the proceeds disbursed, in addition to other remedies allowed by law.

  4. BORROWER'S NAME(S) AND SIGNATURE(S): By signing below, each individual or entity acknowledges and accepts personal obligation and full liability under the Note as Borrower.

 

 

Page 3 of 3

SBA FORM 147 B (5-00)

Doc # L-09-87654321-01

SBA Loan #1234567890

Comment | Suggestion | Feedback

Share on Facebook
Share on Twitter
Share on LinkedIn
Share on Pinterest
Share on Reddit
TruckAndTools.Com News

Low and Moderate income households should never sign for any SBA Disaster Loan without consulting CDBG-DR

By Murray Wennerlund published 5-18-2022 updated 5-26-2022
Contribute $3.00 | | Print | Tag: DeclinedSBALoan | Category: 23
Homeowners often sign for SBA loans because it sounds like the best offer. For personal property replacement loans, yes, for home repair loans no. No if your household is 80% AMI or below which is low to moderate income. HUD CDBG-DR for home repair.

Continue Reading

SBA Disaster Loan Program the Duplication of Benefits story you heard when it was too late.

By Murray Wennerlund published 1-15-2022 updated 2-14-2022
Contribute $3.00 | Print | Tag: DOB | Category: 23
Once you sign your SBA loan agreement for your disaster loan you also signed away any Grant money that you may have been eligible for at a later date. The key is never take a loan when you qualify for a grant but the grants come after the loans.

Continue Reading

Louisiana State Representative Edward Ted James II SBA Regional Administrator District 6 South Central

By Murray Wennerlund published 1-2-2022 updated 2-14-2022
Contribute $3.00 | Print | Tag: SBA | Category: 23
First SBA announcement for the new year that may bring a shakeup to the disaster lending program. Or will Mr. James simply abandon the idea of creating a lending program designed to assist disaster recovery efforts and keep things as they are?

Continue Reading

SBA Economic Injury Disaster Loan (EIDL) Program regulation changes Sept 8, 2021

By Murray Wennerlund published 10-3-2021 updated 4-18-2022
Contribute $3.00 | Print | Tag: SBADenied | Category: 23
Recent changes are: eligible uses of the loan proceeds, business size standard, maximum loan limits, appeal of application that has been declined for a second time.

Continue Reading

Hurricane Ida Presidential Declaration of a Major Disaster for the State of Louisiana

By Murray Wennerlund published 9-7-2021
Contribute $3.00 | Print | Tag: SBA | Category: 23
The Small Business Administration on 09/03/2021 published to the Federal Register a Notice of the Presidential declaration of a major disaster for the State of Louisiana FEMA-4611-DR, dated 08/29/2021 for Physical Damage and EIDL

Continue Reading

American Rescue Plan Act Duplication of Benefits concerns and alerts

By Murray Wennerlund published 4-8-2021 updated 1-15-2022
Contribute $3.00 | PDF | | Print | Tag: EIDL | Category: 23
SVO Grant is a duplication of benefits with the SBA EIDL and any PPP Draw. A duplication of benefits occurs when your business including self-employed gig workers receives financial assistance which can be in the form of federal secured loans

Continue Reading

American Rescue Plan Act of 2021 SEC. 5002. TARGETED EIDL ADVANCE.

By Murray Wennerlund published 3-28-2021 updated 4-25-2021
Contribute $3.00 | PDF | | Print | Tag: ARPA2021 | Category: 23
EIDL Advance is to make payments to covered entities that have not received the full amounts to which the covered entities are entitled under section 331 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act.

Continue Reading

SBA Disaster Recovery Loans Group is teaming up with financial, tax, and loan processors.

By Murray Wennerlund published 3-18-2021 updated 4-26-2021
Contribute $3.00 | PDF | | Print | Tag: SBAProMentor | Category: 23
The COVID-19 pandemic has forced hundreds of small business owners to search the internet for DIY assistance with SBA and US Treasury programs. From the CARES Act we will merge into the American Rescue Plan of 2021 with proper business planning.

Continue Reading

SBA Targeted EIDL Advance Grant

By Contributor published 1-28-2021
Contribute $3.00 | PDF | | Print | Tag: SBA_EIDL | Category: 23
COVID-19 Targeted EIDL Advance was signed into law on December 27, 2020, as part of the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act. The Targeted EIDL Advance provides businesses located in low-income communities.

Continue Reading

Ask us about H.R. 133 Section 324 titled Save Our Stages (SOS) Shuttered Venue Operator Grants

By Murray Wennerlund published 1-26-2021 updated 2-10-2021
Contribute $3.00 | PDF | Print | Tag: SVOG | Category: 23
Section 324 Summary of H. R. 133 Save Our Stages (SOS) Shuttered Venue Operator Grants Questions with Answers. Be sure to submit your question using the form near the bottom of this article. I will be updating this section as changes are published

Continue Reading