Loan Agreement - Business

All states Financial & Banking Updated August 29, 2026 Free Word and PDF

BUSINESS LOAN — INVESTIGATION AND DRAFTING PACKET

DO NOT SIGN OR FUND FROM THIS PACKET. It supplies no lending commitment,
consumer-or-business-purpose conclusion, disclosure exemption, lawful rate,
fee, payment schedule, collateral grant, lien priority, guaranty, covenant,
default, acceleration, remedy, waiver, or enforceability conclusion. Use it
to prepare a separately reviewed transaction and closing set.

1. Matter and Version Control

Item Verified entry
Transaction / loan name [________________________________]
Borrower [________________________________]
Proposed lender [________________________________]
Proposed guarantor(s) [________________________________]
Requested amount / commitment $[________________________________]
Proposed closing date [__/__/____]
Proposed maturity [________________________________]
Primary business purpose [________________________________]
Governing-law candidate [________________________________]
Borrower counsel [________________________________]
Lender counsel [________________________________]
Tax advisers [________________________________]
Collateral / local counsel [________________________________]
Draft version [________________________________]
Approval expiration [________________________________]

This packet is not a commitment or term sheet. Mark all communications and
drafts to avoid implying an obligation to lend, exclusivity, reliance, approval,
or waiver before the authorized documents are complete.

2. Party, Capacity, and Regulatory Classification

2.1 Borrower

Item Entry / evidence
Exact legal name [________________________________]
Entity / individual form [________________________________]
Formation and qualification jurisdictions [________________________________]
Principal place of business / residence [________________________________]
Organizational documents [________________________________]
Incumbency and signer authority [________________________________]
Ownership / control [________________________________]
Licenses and regulated activity [________________________________]
Existing debt, liens, judgments, insolvency, or litigation [________________________________]
Affiliates in the transaction [________________________________]

2.2 Lender

Item Entry / evidence
Exact legal name and form [________________________________]
Formation / charter jurisdiction [________________________________]
Lending, banking, broker, fund, or other status [________________________________]
Licensing, registration, exemption, or preemption analysis [________________________________]
Funding source / participants / assignees [________________________________]
Signer and credit authority [________________________________]
Conflicts, sanctions, beneficial ownership, and compliance review [________________________________]

2.3 Guarantor or Credit Support Provider

Repeat for each proposed guarantor, pledgor, sponsor, affiliate, owner, or
support provider.

Item Entry / evidence
Exact legal name and capacity [________________________________]
Relationship to borrower [________________________________]
Authority and benefit [________________________________]
Proposed support type and limit [________________________________]
Financial and asset information [________________________________]
Marital, homestead, trust, entity, or consent issue [________________________________]
Independent-counsel or conflict issue [________________________________]

3. Transaction and Purpose Gate

Do not label the loan “commercial,” “business purpose,” “investment,” or
“agricultural” solely from the borrower name or a representation. Record actual
use, proceeds, collateral, guarantors, property, and refinancing history.

Classification question Facts / evidence Current official authority Counsel conclusion
Who receives and controls proceeds? [____] [____] [____]
What will each portion fund? [____] [____] [____]
Is any personal, family, household, dwelling, education, consumer, or mixed use involved? [____] [____] [____]
Is real estate owner-occupied, residential, agricultural, construction, or investment property? [____] [____] [____]
Is credit extended to an individual, sole proprietor, trust, or special-purpose entity? [____] [____] [____]
Is the lender regulated or exempt for this activity and place? [____] [____] [____]
Are securities, broker, crowdfunding, participation, or syndication rules implicated? [____] [____] [____]
Are consumer, fair-lending, military, small-business, farm, or disclosure laws implicated? [____] [____] [____]
Are cross-border, currency, sanctions, tax, or withholding issues implicated? [____] [____] [____]

Approved transaction classification: [___________________________________]

Required disclosures, addenda, notices, or alternative forms: [____________]

4. Current Authority and Compliance Register

Enter every legal conclusion from a current official source for each relevant
jurisdiction. A generic UCC reference or “maximum lawful rate” clause does not
complete the analysis.

Topic Current official source and quotation Facts / scope Required action / drafting consequence Reviewer / checked date
Lender licensing / authority [____] [____] [____] [____]
Purpose and disclosure classification [____] [____] [____] [____]
Interest, fees, usury, and compounding [____] [____] [____] [____]
Variable-rate index and fallback [____] [____] [____] [____]
Credit decision / fair lending [____] [____] [____] [____]
Promissory note / negotiability [____] [____] [____] [____]
Collateral grant and perfection [____] [____] [____] [____]
Real-property lien and foreclosure [____] [____] [____] [____]
Guaranty and spousal / homestead issues [____] [____] [____] [____]
Entity authority and fraudulent transfer [____] [____] [____] [____]
Default, acceleration, notice, and cure [____] [____] [____] [____]
Bankruptcy, receivership, and insolvency [____] [____] [____] [____]
Assignment, participation, and servicing [____] [____] [____] [____]
Privacy, data, AML, sanctions, and reporting [____] [____] [____] [____]
Electronic execution and record formalities [____] [____] [____] [____]
Dispute, forum, jury, arbitration, and remedies [____] [____] [____] [____]

5. Facility and Funding Schedule

Term Approved business instruction
Facility type [TERM / REVOLVER / DELAYED DRAW / LINE / OTHER]
Maximum principal / commitment $[________________________________]
Currency [________________________________]
Availability start and end [________________________________]
Number and size of advances [________________________________]
Advance request method and cutoff [________________________________]
Conditions for each advance [________________________________]
Funding account and verification [________________________________]
Commitment reduction / cancellation [________________________________]
Reborrowing permitted? [________________________________]
Maturity / demand feature [________________________________]
Use-of-proceeds restrictions [________________________________]
Source of repayment [________________________________]

Sources and Uses

Use Payee Amount Evidence / closing instruction
[________________________________] [________] $[________] [________]
[________________________________] [________] $[________] [________]
Fees / costs / reserves [________] $[________] [________]
Net proceeds [________] $[________] [________]

6. Pricing, Interest, and Fee Development

No rate or charge is selected until counsel confirms the governing calculation,
licensing, usury, disclosure, tax, and remedy rules.

Item Proposed term Calculation / example Current-law review Approved clause instruction
Fixed or variable interest [____] [____] [____] [____]
Index / screen / source [____] [____] [____] [____]
Margin, floor, and cap [____] [____] [____] [____]
Day-count and payment dates [____] [____] [____] [____]
Index unavailability / fallback [____] [____] [____] [____]
Default rate [____] [____] [____] [____]
Late charge [____] [____] [____] [____]
Origination / commitment / unused fee [____] [____] [____] [____]
Draw / renewal / exit / prepayment fee [____] [____] [____] [____]
Protective advance / reimbursement [____] [____] [____] [____]
Compounding / capitalization [____] [____] [____] [____]
Tax gross-up / withholding [____] [____] [____] [____]

Independent spreadsheet or amortization model: [__________________________]

Second-person calculation check: [_______________________________________]

Do not rely on a savings clause to cure an unlawful or undisclosed rate, fee,
calculation, or lender activity.

7. Repayment, Prepayment, and Application

Topic Drafting instruction
Scheduled principal [________________________________]
Scheduled interest [________________________________]
Interest-only period [________________________________]
Balloon / maturity amount [________________________________]
Payment method and account [________________________________]
Business-day adjustment [________________________________]
Voluntary prepayment [________________________________]
Mandatory prepayment [________________________________]
Prepayment premium / make-whole [________________________________]
Application order [________________________________]
Returned / rejected payment [________________________________]
Statements and dispute process [________________________________]

Attach a payment schedule that reconciles principal, rate, day count, payment
frequency, fees, maturity, prepayment, and every variable-rate assumption. This
packet supplies no bank-holiday definition or generic payment-shift rule.

8. Collateral and Priority Plan

8.1 Collateral Inventory

Collateral Owner Location / jurisdiction Existing lien / claim Proposed grant Perfection / priority step Local counsel
Accounts / payment rights [____] [____] [____] [____] [____] [____]
Inventory [____] [____] [____] [____] [____] [____]
Equipment / titled assets [____] [____] [____] [____] [____] [____]
Deposit / securities account [____] [____] [____] [____] [____] [____]
Intellectual property [____] [____] [____] [____] [____] [____]
Real property / fixtures [____] [____] [____] [____] [____] [____]
Equity / membership interests [____] [____] [____] [____] [____] [____]
Other [____] [____] [____] [____] [____] [____]

8.2 Search and Perfection Checklist

☐ Organizational and name evidence

☐ UCC / PPSA / registry searches

☐ Tax, judgment, litigation, bankruptcy, and fixture searches

☐ Title, survey, zoning, environmental, insurance, and appraisal review

☐ Filing office and debtor-location analysis

☐ Control agreement, possession, notation, mortgage, deed of trust, or other
asset-specific step

☐ Prior-lien payoff, release, subordination, intercreditor, or landlord waiver

☐ Continuation, renewal, monitoring, and post-closing calendar

A blanket “all assets” label does not replace the asset, owner, attachment,
description, perfection, priority, proceeds, after-acquired-property, and
jurisdiction analysis.

9. Guaranty and Credit Support Plan

Support Provider Scope / limit Duration / burn-off Conditions Defenses / waivers review Separate document
Payment guaranty [____] [____] [____] [____] [____] [____]
Completion / carry guaranty [____] [____] [____] [____] [____] [____]
Collateral pledge [____] [____] [____] [____] [____] [____]
Deposit / reserve [____] [____] [____] [____] [____] [____]
Letter of credit [____] [____] [____] [____] [____] [____]
Other [____] [____] [____] [____] [____] [____]

Do not assume a guaranty is unlimited, continuing, unconditional, enforceable
against a spouse, or supported by consideration. Record every consent,
authority, benefit, cap, termination, reinstatement, subrogation, contribution,
and insolvency issue.

10. Conditions Precedent and Closing Deliverables

Deliverable / condition Responsible party Form / evidence Due Approved
Organizational / authority documents [____] [____] [____] [____]
Executed loan agreement and note [____] [____] [____] [____]
Security and guaranty documents [____] [____] [____] [____]
Searches, releases, and perfection evidence [____] [____] [____] [____]
Financial statements / certificates [____] [____] [____] [____]
Appraisal / inspection / environmental [____] [____] [____] [____]
Licenses, permits, consents, and insurance [____] [____] [____] [____]
Know-your-customer / sanctions / tax forms [____] [____] [____] [____]
Legal opinions / local counsel [____] [____] [____] [____]
Funding and escrow instructions [____] [____] [____] [____]
Other [____] [____] [____] [____]

11. Representations and Disclosure Schedule

Topic Borrower disclosure / exception Evidence Bring-down date
Organization, power, and authority [____] [____] [____]
Financial information and no misleading omission [____] [____] [____]
Litigation, investigations, and orders [____] [____] [____]
Taxes [____] [____] [____]
Compliance, permits, and licenses [____] [____] [____]
Assets, title, and liens [____] [____] [____]
Contracts and defaults [____] [____] [____]
Intellectual property and data [____] [____] [____]
Environmental and workplace matters [____] [____] [____]
Sanctions, AML, anti-corruption, and beneficial ownership [____] [____] [____]
Solvency / capitalization [____] [____] [____]
Insurance [____] [____] [____]
Related-party transactions [____] [____] [____]

No “no Material Adverse Effect,” litigation, tax, environmental, compliance, or
solvency statement should be given without a defined period, knowledge
standard, materiality rule, and complete disclosure schedule.

12. Covenants and Reporting Matrix

Covenant / report Metric or action Frequency / deadline Test period Cure / equity right Owner
Financial statements [____] [____] [____] [____] [____]
Compliance certificate [____] [____] [____] [____] [____]
Borrowing-base certificate [____] [____] [____] [____] [____]
Debt-service / leverage / liquidity [____] [____] [____] [____] [____]
Budget and variance [____] [____] [____] [____] [____]
Taxes and claims [____] [____] [____] [____] [____]
Insurance [____] [____] [____] [____] [____]
Collateral records / inspections [____] [____] [____] [____] [____]
Litigation / default / event notice [____] [____] [____] [____] [____]
Change of control / ownership [____] [____] [____] [____] [____]
Additional debt / liens / distributions [____] [____] [____] [____] [____]
Transactions with affiliates [____] [____] [____] [____] [____]

Define every accounting term, permitted basket, annualization, pro forma
adjustment, cure right, testing date, and hierarchy. Attach worked examples for
the covenants that could accelerate the loan.

13. Default and Remedy Decision Sheet

Possible event Trigger and materiality Notice Cure Acceleration / remedy Mandatory-law / insolvency review
Payment failure [____] [____] [____] [____] [____]
Covenant breach [____] [____] [____] [____] [____]
Misrepresentation [____] [____] [____] [____] [____]
Cross-default / cross-acceleration [____] [____] [____] [____] [____]
Judgment / attachment [____] [____] [____] [____] [____]
Insolvency / bankruptcy event [____] [____] [____] [____] [____]
Change of control [____] [____] [____] [____] [____]
Collateral impairment / priority [____] [____] [____] [____] [____]
Guaranty / support failure [____] [____] [____] [____] [____]
Illegality / regulatory event [____] [____] [____] [____] [____]
Material adverse event [____] [____] [____] [____] [____]

Do not assume an automatic default, ipso-facto consequence, confession,
self-help right, setoff, collection cost, default rate, possession, sale, or
foreclosure remedy. Counsel must coordinate the loan documents, collateral law,
court process, insolvency law, waivers, notices, and actual creditor status.

14. Risk Allocation and Dispute Decisions

Topic Business proposal Mandatory-law / public-policy constraint Insurance / economic effect Counsel-approved instruction
Borrower indemnity [____] [____] [____] [____]
Lender indemnity / misconduct carve-out [____] [____] [____] [____]
Defense and settlement control [____] [____] [____] [____]
Excluded damages [____] [____] [____] [____]
Liability cap [____] [____] [____] [____]
Expenses and attorney fees [____] [____] [____] [____]
Governing law [____] [____] [____] [____]
Court / venue [____] [____] [____] [____]
Arbitration [____] [____] [____] [____]
Jury treatment [____] [____] [____] [____]
Setoff / account debit [____] [____] [____] [____]
Assignment / participation [____] [____] [____] [____]

No borrower indemnity, liability cap, prevailing fee, exclusive forum,
arbitration, jury waiver, no-bond relief, setoff, or assignment right is
selected here.

15. Document Stack and Conflict Map

Document Required? Purpose Governing law / forum Conflicts / precedence Status
Commitment / term sheet [____] [____] [____] [____] [____]
Loan agreement [____] [____] [____] [____] [____]
Promissory note [____] [____] [____] [____] [____]
Security agreement [____] [____] [____] [____] [____]
Guaranty [____] [____] [____] [____] [____]
Mortgage / deed of trust [____] [____] [____] [____] [____]
Pledge / control agreement [____] [____] [____] [____] [____]
Intercreditor / subordination [____] [____] [____] [____] [____]
Fee letter / side letter [____] [____] [____] [____] [____]
Disclosure / notice / addendum [____] [____] [____] [____] [____]
Closing / escrow instructions [____] [____] [____] [____] [____]

16. Closing and Post-Closing Control

☐ Credit and investment approvals are final and within authority.

☐ Party names, organizational status, authority, beneficial ownership, and
signers match all documents and filings.

☐ Purpose, proceeds, facility, pricing, payment model, maturity, prepayment,
fees, and disclosures are consistent.

☐ Collateral descriptions, ownership, search results, releases, priority,
perfection steps, insurance, and local-counsel opinions are complete.

☐ Guaranty, spouse, homestead, trust, entity, and fraudulent-transfer issues
are resolved.

☐ Conditions precedent are satisfied or specifically waived by an authorized
person in a written record that states the consequence.

☐ The governing law, forum, arbitration, jury, indemnity, liability, fee,
electronic-execution, notice, assignment, and remedy terms received current-law
review.

☐ Funds-transfer instructions were verified through an independent trusted
channel; no sensitive bank or tax identifier is kept in the public template.

☐ The final document stack has a conflict and precedence check and no blank,
contradictory option, stale index, or internal drafting note.

☐ Original / electronic records, filings, continuations, covenant dates,
insurance renewals, tax dates, maturity, and post-closing items have assigned
owners and calendars.

17. Approval and Draft Handoff

Reviewer Name Decision / conditions Date
Borrower business / finance [____] [____] [____]
Lender credit / investment [____] [____] [____]
Borrower counsel [____] [____] [____]
Lender counsel [____] [____] [____]
Tax adviser [____] [____] [____]
Collateral / local counsel [____] [____] [____]
Compliance / regulatory [____] [____] [____]
Other [____] [____] [____]

Approved operative document version(s): [________________________________]

Remaining closing conditions: [__________________________________________]

Post-closing owner and next review: [____________________________________]

Verified 2026-08-29 as a law-neutral, non-executable transaction and drafting
packet. No legal proposition or case citation is retained.

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About this template

Last updated
August 29, 2026
Citations checked
August 29, 2026
Jurisdiction
All states
Category
Financial & Banking

Financial and banking documents govern loans, security interests, account agreements, and commercial transactions between lenders, borrowers, and financial institutions. Promissory notes, guaranties, security agreements, and UCC filings have precise legal requirements, and mistakes can leave a lender unsecured or a borrower on the hook for more than they agreed to. Well-drafted finance paperwork protects both sides and keeps the deal enforceable if something goes wrong later.

Not legal advice

This template is provided for informational purposes. We recommend having an attorney review any legal document before signing, especially for high-value or complex matters.

Checked against the law it cites

A reviewer verified this template's legal citations against the official source on August 29, 2026.

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