[{"data":1,"prerenderedAt":525},["ShallowReactive",2],{"document-loan-agreement-stockholder-to-corporation-D418":3},{"document":4,"label":24,"preview":11,"thumb":25,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":26,"breadcrumb":30,"related":38,"customDescModule":182,"customdescription":6,"mdFm":183,"mdProseHtml":524},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":15,"keywords":23},"LOAN AGREEMENT This Loan Agreement (\"Agreement\") is made and effective the [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), a stockholder of [COMPANY], having [his/her] main residence located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Borrower\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] RECITALS WHEREAS, Borrower desires to obtain from Lender a loan in the principal amount of [AMOUNT] (the \"Loan\"); and WHEREAS, Lender is a stockholder of [COMPANY] and, Lender desires to grant Borrower the Loan to [BRIEFLY EXPLAIN HOW THE LOAN WILL BE USED]. WHEREAS, Borrower's obligation to repay the Loan shall be evidenced by a promissory note substantially in the form attached as Exhibit A hereto (the \"Note\"). Borrower shall execute and deliver to Lender the Note concurrently with execution and delivery of this Agreement. NOW, THEREFORE, in consideration of the terms and conditions herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: Promise to Pay Within [NUMBER] months from today, Borrower promises to pay to Lender the sum of [AMOUNT]. (OPTIONAL: and interest and other charges stated below). Breakdown of Loan Amount of Loan: Total of payments: Annual Rate: Repayment Borrower will repay the amount of this loan in [NUMBER] equal uninterrupted monthly installments of [AMOUNT] each on the [DAY] of each month starting on the [DATE], and ending on [DATE]. Prepayment Lender grants Borrower the right to prepay the whole outstanding amount at any time. Responsibility Although this Agreement may be signed below by more than one person, Borrower warrants to Lender that the stockholders of [COMPANY] (except Lender himself) are each as individuals responsible for paying back the full amount. Late Charge [OPTIONAL] Any installment not paid within [NUMBER] days of its due date shall be subject to a late charge of [%] of the payment, not to exceed [AMOUNT] for any such late installment. Security To protect Lender, Borrower gives what is known as a security interest or mortgage in: [Describe] Default If for any reason Borrower fails to make any payment on time, Borrower shall be in default. The Lender can then demand immediate payment of the entire remaining unpaid balance of this loan, without giving anyone further notice. If Borrower has not paid the full amount of the loan when the final payment is due, the Lender will charge me interest on the unpaid balance at [%] per year. Right of Offset If this loan becomes past due, the Lender will have the right to pay this loan from any deposit or security Borrower has with Lender without further notice. IN WITNESS WHEREOF, the undersigned has caused this Loan Agreement to be duly executed as of the date first written below. LENDER BORROWER (Signing for [YOUR COMPANY NAME]) Authorized Signature Authorized Signature Print Name and Title Print Name and Title PROMISSORY NOTE This Promissory Note (the \"Note\") is made and effective the [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), a stockholder of [COMPANY], having [his/her] main residence located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME ] (the \"Borrower\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] TERMS FOR VALUE RECEIVED, the Borrower promises to pay to the order of Lender the principal sum of [AMOUNT], together with all charges and interest herein provided, payable at the rate and in the manner hereinafter set forth: Borrower shall make monthly payments of principal and interest at the rate of [%] per annum based upon an amortization of [NUMBER] months. Monthly payments shall be due on or before the first day of each month with the first payment being due on or before [DATE]. If not sooner paid, all amounts due under this Note, including principal, interest and other charges shall be due and payable in full on or before the first day of [MONTH], [YEAR] (the \"Maturity Date\"). Time is of the essence of the payment obligations hereunder and each monthly payment shall be due and payable on or before the first day of each month. This Note is and will be secured by a certain first priority security interest in all of the tangible and intangible property of the Borrower, to be recorded in all applicable governmental offices. The parties shall execute a separate security agreement, in form and substance acceptable to the Lender in all respects. Borrower agrees to execute any such security agreements presented by the Lender or other documents required by the Lender in order to perfect its security interest in the above described property. Said Security Agreement and any other instruments and documents executed in connection with or given as security for this Note shall hereinafter be referred to collectively as the \"Loan Documents.\" All of the terms, covenants, Conditions, representations and warranties contained in the Loan Documents are hereby made part of this Note to the same extent and with the same force and effect as if fully set forth herein. ",null,"Loan Agreement Stockholder to Corporation","5",54,"doc","https://templates.business-in-a-box.com/imgs/1000px/loan-agreement_stockholder-to-corporation-D418.png","https://templates.business-in-a-box.com/imgs/250px/418.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#418.xml",{"title":6,"description":6},[16,19,22],{"label":17,"url":18},"Finance & Accounting","/templates/finance-accounting/",{"label":20,"url":21},"Business Loans","/templates/business-loan/",{"label":20,"url":21},"loan agreement stockholder to corporation","Loan Agreement Stockholder to Corporation Template","https://templates.business-in-a-box.com/imgs/400px/418.png",[27,16,19,22],{"label":28,"url":29},"Templates","/templates/",[31,32,35],{"label":28,"url":29},{"label":33,"url":34},"Legal Agreements","/templates/business-legal-agreements/",{"label":36,"url":37},"Loans & Promissory Notes","/templates/loans-and-promissory-notes/",[39,43,47,51,55,59,63,67,72,76,80,84,88,107,123,138,154,169],{"label":40,"url":41,"thumb":42,"extension":10},"Shareholder Loan Agreement","/template/shareholder-loan-agreement-D13239","https://templates.business-in-a-box.com/imgs/250px/13239.png",{"label":44,"url":45,"thumb":46,"extension":10},"Loan Agreement","/template/loan-agreement-D417","https://templates.business-in-a-box.com/imgs/250px/417.png",{"label":48,"url":49,"thumb":50,"extension":10},"Subordinated Loan Agreement","/template/subordinated-loan-agreement-D12877","https://templates.business-in-a-box.com/imgs/250px/12877.png",{"label":52,"url":53,"thumb":54,"extension":10},"Bylaws Not for Profit Corporation","/template/bylaws-not-for-profit-corporation-D1004","https://templates.business-in-a-box.com/imgs/250px/1004.png",{"label":56,"url":57,"thumb":58,"extension":10},"Equipment Loan Agreement","/template/equipment-loan-agreement-D12843","https://templates.business-in-a-box.com/imgs/250px/12843.png",{"label":60,"url":61,"thumb":62,"extension":10},"Loan Policy","/template/loan-policy-D13274","https://templates.business-in-a-box.com/imgs/250px/13274.png",{"label":64,"url":65,"thumb":66,"extension":10},"Deed of Pledge Loan","/template/deed-of-pledge-loan-D983","https://templates.business-in-a-box.com/imgs/250px/983.png",{"label":68,"url":69,"thumb":70,"extension":71},"Loan Calculator","/template/loan-calculator-D421","https://templates.business-in-a-box.com/imgs/250px/421.png","xls",{"label":73,"url":74,"thumb":75,"extension":10},"Shareholders Agreement","/template/shareholders-agreement-D1016","https://templates.business-in-a-box.com/imgs/250px/1016.png",{"label":77,"url":78,"thumb":79,"extension":10},"Loan Application_Review Form","/template/loan-application_review-form-D419","https://templates.business-in-a-box.com/imgs/250px/419.png",{"label":81,"url":82,"thumb":83,"extension":10},"Board Resolution Approving Loan of Funds","/template/board-resolution-approving-loan-of-funds-D46","https://templates.business-in-a-box.com/imgs/250px/46.png",{"label":85,"url":86,"thumb":87,"extension":10},"Shareholder Nominee Agreement","/template/shareholder-nominee-agreement-D14055","https://templates.business-in-a-box.com/imgs/250px/14055.png",{"description":89,"descriptionCustom":6,"label":90,"pages":91,"size":92,"extension":10,"preview":93,"thumb":94,"svgFrame":95,"seoMetadata":96,"parents":97,"keywords":105,"url":106},"PROMISSORY NOTE This Promissory Note (the \"Note\") is made and effective the [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Borrower\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] TERMS FOR VALUE RECEIVED, the Borrower promises to pay to the order of Lender, at its principal office located at [ADDRESS], or at such other place that is designated in writing by the holder hereof, the principal sum of [AMOUNT], together with all charges and interest herein provided, payable at the rate and in the manner hereinafter set forth: Borrower shall make monthly payments of principal and interest at the rate of [%] per annum based upon an amortization of [NUMBER] months. Monthly payments shall be due on or before the first day of each month with the first payment being due on or before [DATE]. If not sooner paid, all amounts due under this Note, including principal, interest and other charges shall be due and payable in full on or before the first day of [MONTH], [YEAR] (the \"Maturity Date\"). Time is of the essence of the payment obligations hereunder and each monthly payment shall be due and payable on or before the first day of each month. This Note is and will be secured by a certain first priority security interest in all of the tangible and intangible property of the Borrower, to be recorded in all applicable governmental offices. The parties shall execute a separate security agreement, in form and substance acceptable to the Lender in all respects. Borrower agrees to execute any such security agreements presented by the Lender or other documents required by the Lender in order to perfect its security interest in the above described property. Said Security Agreement and any other instruments and documents executed in connection with or given as security for this Note shall hereinafter be referred to collectively as the \"Loan Documents.\" All of the terms, covenants, Conditions, representations and warranties contained in the Loan Documents are hereby made part of this Note to the same extent and with the same force and effect as if fully set forth herein. If all or any portion of any payment due hereunder is not received by the Lender within [NUMBER] calendar days after the date when such payment is due, Borrower shall pay a late charge equal to [%] of such payment, such late charge to be immediately due and payable without demand by Lender. Borrower shall have the right to prepay all (but not a portion) of the indebtedness evidenced by this Note at any time, by paying the Lender an amount equal to the sum of (I) the principal balance then outstanding, (ii) all interest accrued to the date of such prepayment, (iii) all interest calculated through the Maturity Date, and (iv) any late charge or charges then due and owing. If any payment under this Note is not paid in full by the [DAY] of any month during the term hereof or if the entire amount due as represented by this Note is not paid in full on or before the Maturity Date, or should default be made in the performance or observation of any of the terms, covenants, or conditions contained in the Loan Documents, or if any representation or warranty contained in the Loan Documents is breached or is or becomes untrue, this Note shall be in default, and the entire principal amount outstanding hereunder, accrued interest thereon, all late charges, if any, and any and all other charges due hereunder, shall, at Lender's option, immediately become due and payable, without further notice, the giving of such notice being expressly waived by the Borrower","Promissory Note","3",39,"https://templates.business-in-a-box.com/imgs/1000px/promissory-note-D434.png","https://templates.business-in-a-box.com/imgs/250px/434.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#434.xml",{"title":6,"description":6},[98,100,102],{"label":17,"url":99},"finance-accounting",{"label":20,"url":101},"business-loan",{"label":103,"url":104},"Promissory Notes","promisory-note","promissory note","/template/promissory-note-D434",{"description":108,"descriptionCustom":6,"label":109,"pages":110,"size":111,"extension":10,"preview":112,"thumb":113,"svgFrame":114,"seoMetadata":115,"parents":117,"keywords":116,"url":122},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: Demand to Pay Promissory Note Dear [Contact name], This is to notify you that payment is past due under your Promissory Note (the \"Note\") dated [DATE]. The following payments have not been received: Payment Due Date Amount of Principal Due Amount of Interest Due Late Charge Thus, as of the date of this letter, you are in arrears in the total amount of [Amount OF arrears].","Demand to Pay Promissory Note","1",513,"https://templates.business-in-a-box.com/imgs/1000px/demand-to-pay-promissory-note-D207.png","https://templates.business-in-a-box.com/imgs/250px/207.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#207.xml",{"title":116,"description":6},"demand to pay promissory note",[118,121],{"label":119,"url":120},"Credit & Collection","credit-collection",{"label":119,"url":120},"/template/demand-to-pay-promissory-note-D207",{"description":124,"descriptionCustom":6,"label":125,"pages":126,"size":127,"extension":10,"preview":128,"thumb":129,"svgFrame":130,"seoMetadata":131,"parents":132,"keywords":136,"url":137},"CREDIT AGREEMENT This Credit Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Borrower\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [BANK NAME] (the \"Lender\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS the Borrower wishes to borrow certain monies from the Lender, and the Lender is prepared to lend monies to the Borrower on the terms and conditions herein contained. NOW, THEREFORE, THE PARTIES HERETO HAVE AGREED AS FOLLOWS: 1. INTERPRETATION 1.1 Definitions The following words and expressions, wherever used in this Agreement or in its Schedules, or in any deed of agreement supplement or ancillary hereto, unless there be something in the subject or the context inconsistent therewith, shall have the following meanings: 1.1.1 \"Advance\" means any advance by the Lender under the Term Commitment or under the Operating Commitment; 1.1.2 \"Affiliate\" means any Person, which is directly, or indirectly controlling, is controlled by, or is under direct or indirect common control with the Borrower. A Person shall be deemed to control a corporation or a limited partnership if such person possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of such corporation, limited partnership or general partner of such limited partnership, as the case may be, whether through the ownership of voting securities, by contract, or otherwise; 1.1.3 \"Agreement\", \"this Agreement\", \"these presents\", \"herein\", \"hereby\", \"hereunder\", and similar expressions refer to the present Agreement and any accompanying Schedules and include any and every deed of instrument which is supplementary or ancillary hereto or in implementation hereof, the whole as same may be amended from time to time; 1.1.4 \"Available Operating Commitment\" means, as at any time, as determined by the Lender, the difference between: 1.1.4.1 an amount being the lesser of: 1.1.4.1.1 the Operating Commitment; or 1.1.4.1.2 an amount equal to: 1.1.4.1.2.1 [%] of the book value of such of the Borrower's trade accounts receivable and book debts which are acceptable to the Lender acting reasonably and are outstanding for less than [NUMBER] days, other than accounts receivable and book debts which are being disputed by the debtors thereof or which are owed by any Affiliate of the Borrower; plus 1.1.4.1.2.2 the lesser of [AMOUNT] or [%] of the book value of the Borrower's Inventory, other than Inventory consisting of work-in-process and Inventory located outside of [COUNTRY]; and 1.1.4.2 the Operating Loan. 1.1.5 \"Bank Act Documents\" is the collective reference to: the Notice of Intention to Give Security; the Application for Credit and Promise to Give Security; the Agreement as to Powers of the Lender in relation to all Advances and Securities Held Therefore and the Assignment of Security on all Property of Specified Kinds, all in the form required by the Lender; 1.1.6 \"[COMPANY NAME]\" means [COMPANY NAME]; 1.1.7 \"Company Lease\" means the lease between the Borrower and [COMPANY NAME] wherein certain equipment which was purchased from or on behalf of the Borrower for [AMOUNT] has been leased to the Borrower by [AMOUNT] for a term of [NUMBER] years; 1.1.8 \"Bond\" means the [%] collateral mortgage bond issued pursuant to the Trust Deed and pledged to the Lender pursuant to the Pledge Agreement; 1.1.9 \"Borrower\" refers to [NAME] 1.1.10 \"Borrower's Counsel\" refers to [EMPLOYEE], [EMPLOYEE]; \"Business Day\" means any day excluding Saturday, Sunday and any other day which, in [COUNTRY], is a legal holiday or a day on which banking institutions are authorized by [COUNTRY] law or by local proclamation to close; \"Equipment Lease\" means the lease between the Borrower and [COMPANY] wherein certain equipment which was purchased from or on behalf of the Borrower for [AMOUNT] has been leased to the Borrower by CID for a term of [NUMBER] years; \"Commercial Pledge Agreement\" refers to the commercial pledge agreement referred to in subsection 7.1.8 and as the same may be amended or supplemented from time to time; \"Default\" means any of the events specified in Section 13.1, the occurrence or failure to cure of which constitutes, or with the passage of time or giving of notice or both, would constitute an Event of Default; \"Event of Default\" has the meaning ascribed to it in Section 13.1; \"Guarantee\" means each of the agreements referred to subsection 7.1.9; \"Guarantor\" refers to [GUARANTOR] \"Indebtedness\" includes, for any Person: obligations for borrowed money; obligations representing the deferred purchase price of property or services; obligations, whether or not assumed, secured by Liens in or payable out of the proceeds or production from, property owned by such Person; lease obligations which would be shown as a liability on a balance sheet of such Person; and obligations of another Person of the types set forth above which such Person has guaranteed (except by reason of endorsement for collection in the ordinary course of business) or in respect of which such Person is liable, contingently or otherwise including, without limitation, liable by way of agreement to purchase property or services, to provide funds for payment, to supply funds to or otherwise invest in such other Person, or otherwise to assure a creditor of such other Person against loss; \"Insurance\" is the collective reference to any and all present and future policies of insurance providing the Borrower coverage for its properties, assets and business; \"Inventory\" means the goods, wares, materials and supplies, merchandise, products, products in process, stock-in-trade and on hand described or referred to in the Assignment of Security in all Property of Specified Kinds forming part of the Bank Act Documents; \"[YOUR COUNTRY] Law\" means all applicable provisions of statutes, ordinances, decrees, orders in council, rules, regulations and orders of governmental bodies, treaties and all applicable orders and decrees of courts; \"Lender\" means [COMPANY NAME] and includes any successors or assigns thereof; \"Lien\" means any interest in property or the income or profits therefrom securing an obligation owed to, or claimed by, a Person other than the owner (which for the purposes hereof shall include a possessor under a title retention agreement and a lessee under a lease herein below described) of such property, whether such interest is based on common law, civil [COMPANY NAME], statute or contract, and including, but not limited to, any secured interest, hypothec, mortgage, pledge, lien, claim, charge, cession, transfer, assignment, encumbrance, title retention agreement, lessor's interest under a lease which would be capitalized on a balance sheet of the owner of such property or analogous instrument in, of, or on any property or the income or profits therefrom of a Person, other than Permitted Encumbrances and Liens included in the ordinary course of business and for the purpose of carrying on same not in connection with the borrowing of money or the obtaining of credit and which do not in the aggregate materially impair the use, the income or profits therefrom, of the property covered thereby in the operation of such Person's business; \"Loan\" means, as at any time, the aggregate of the outstanding amount of any monies advanced by the Lender to, or to the order of, the Borrower pursuant to this Agreement plus any other amounts of principal, interest and accessories due and payable to the Lender hereunder by the Borrower; \"Obligations\" has the meaning ascribed to it in Section 7.1; \"Operating Commitment\" has the meaning ascribed to it in Section 2.1;","Credit Agreement","21",143,"https://templates.business-in-a-box.com/imgs/1000px/credit-agreement-D416.png","https://templates.business-in-a-box.com/imgs/250px/416.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#416.xml",{"title":6,"description":6},[133,134,135],{"label":17,"url":99},{"label":20,"url":101},{"label":20,"url":101},"loan agreement","/template/loan-agreement-D416",{"description":139,"descriptionCustom":6,"label":140,"pages":141,"size":111,"extension":10,"preview":142,"thumb":143,"svgFrame":144,"seoMetadata":145,"parents":147,"keywords":146,"url":153},"PERSONAL GUARANTEE This Personal Guarantee (the \"Agreement\") is effective [DATE], BETWEEN: [FIRST PARTY NAME] (the \"Guarantor\"), an individual with his main address located at: [YOUR COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Second Party\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] I, [NAME OF GUARANTOR], residing at [COMPLETE ADDRESS], hereby personally and solidarity guarantee all of the obligations of [YOUR COMPANY NAME] and agree to be bound solidarity with [YOUR COMPANY NAME] for the prompt performance of [YOUR COMPANY NAME]'s obligations under that certain [SPECIFY] Agreement dated [DATE] (the \"Agreement\") between [YOUR COMPANY NAME] and [COMPANY NAME], including without limitation the payment of all goods, wares and merchandise as [YOUR COMPANY NAME] may from time to time select and purchase on credit from [COMPANY NAME], and hereby expressly renounce to the benefits of division and discussion. Furthermore, I agree that waive may extend the time for payment of any amounts owing to it by waive and/or may waive any default by waive without it in any way lessening or limiting my liability hereunder. Notwithstanding the foregoing, my guarantee hereunder to pay any and all amounts owing by [YOUR COMPANY NAME] to [COMPANY NAME] shall be limited to the sum of [AMOUNT] OR [%] of such outstanding amount.","Personal Guarantee","2","https://templates.business-in-a-box.com/imgs/1000px/personal-guarantee-D405.png","https://templates.business-in-a-box.com/imgs/250px/405.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#405.xml",{"title":146,"description":6},"personal guarantee",[148,149,150],{"label":17,"url":99},{"label":20,"url":101},{"label":151,"url":152},"Guaranties & Collateral","guaranties-collateral","/template/personal-guarantee-D405",{"description":155,"descriptionCustom":6,"label":156,"pages":91,"size":111,"extension":10,"preview":157,"thumb":158,"svgFrame":159,"seoMetadata":160,"parents":162,"keywords":161,"url":168},"NON-DISCLOSURE AGREEMENT (NDA) This Non-Disclosure Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Disclosing Party\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [RECEIVING PARTY NAME] (the \"Receiving Party\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS, Receiving Party has been or will be engaged in the performance of work on [DESCRIBE]; and in connection therewith will be given access to certain confidential and proprietary information; and WHEREAS, Receiving Party and Disclosing Party wish to evidence by this Agreement the manner in which said confidential and proprietary material will be treated. NOW, THEREFORE, it is agreed as follows: NON-DISCLOSURE OF CONFIDENTIAL INFORMATION Both Parties understand and agree that each Party may have access to the confidential information of the other party. For the purposes of this Agreement, \"Confidential Information\" means proprietary and confidential information about the Disclosing Party's (or it's suppliers') business or activities. Such information includes all business, financial, technical, and other information marked or designated by such Party as \"confidential\" or \"proprietary.\" Confidential Information also includes information which, by the nature of the circumstances surrounding the disclosure, ought in good faith to be treated as confidential. For the purposes of this Agreement, Confidential Information does not include: Information that is currently in the public domain or that enters the public domain after the signing of this Agreement. Information a Party lawfully receives from a third Party without restriction on disclosure and without breach of a non-disclosure obligation. Information that the Receiving Party knew prior to receiving any Confidential Information from the Disclosing Party. Information that the Receiving Party independently develops without reliance on any Confidential Information from the Disclosing Party. Each Party agrees that it will not disclose to any third Party or use any Confidential Information disclosed to it by the other Party except when expressly permitted in writing by the other Party. Each Party also agrees that it will take all reasonable measures to maintain the confidentiality of all Confidential Information of the other Party in its possession or control. TERM The term of this Agreement is [number] of [years/months] from the date of execution by both Parties. TITLE The Receiving Party agrees that all Confidential Information furnished by the Disclosing Party shall remain the sole property of the Disclosing Party. DISCLAIMER","Non Disclosure Agreement Nda","https://templates.business-in-a-box.com/imgs/1000px/non-disclosure-agreement-nda-D12692.png","https://templates.business-in-a-box.com/imgs/250px/12692.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12692.xml",{"title":161,"description":6},"non disclosure agreement nda",[163,165],{"label":33,"url":164},"business-legal-agreements",{"label":166,"url":167},"Confidentiality Agreements","confidentiality-agreement","/template/non-disclosure-agreement-nda-D12692",{"description":170,"descriptionCustom":6,"label":171,"pages":110,"size":172,"extension":10,"preview":173,"thumb":174,"svgFrame":175,"seoMetadata":176,"parents":177,"keywords":180,"url":181},"ADHESION TO THE UNANIMOUS SHAREHOLDER AGREEMENT I, [INDIVIDUAL NAME], domiciled and residing at [FULL ADDRESS], declare that: As of today, I subscribe to [NUMBER] class [SPECIFY] shares issued from the share-capital of [COMPANY NAME]; I have examined the Unanimous Shareholders Agreement and I am satisfied of its content and acknowledge that a copy of such documents has been remitted to me;","Adhesion to the Unanimous Shareholder Agreement",41,"https://templates.business-in-a-box.com/imgs/1000px/adhesion-to-the-unanimous-shareholder-agreement-D848.png","https://templates.business-in-a-box.com/imgs/250px/848.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#848.xml",{"title":6,"description":6},[178,179],{"label":33,"url":164},{"label":33,"url":164},"adhesion to unanimous shareholder agreement","/template/adhesion-to-the-unanimous-shareholder-agreement-D848",false,{"seo":184,"reviewer":195,"legal_disclaimer":199,"quick_facts":200,"at_a_glance":202,"personas":206,"variants":231,"glossary":260,"clauses":293,"how_to_fill":344,"common_mistakes":385,"faqs":410,"industries":438,"comparisons":455,"diy_vs_lawyer":469,"jurisdictions":482,"related_template_ids_curated":503,"schema":512,"classification":513},{"meta_title":185,"meta_description":186,"primary_keyword":187,"secondary_keywords":188},"Loan Agreement Stockholder to Corporation Template | BIB","Free stockholder-to-corporation loan agreement template. Covers principal, interest, repayment, default, and subordination.","loan agreement stockholder to corporation template",[189,190,191,192,193,194],"stockholder loan agreement","shareholder loan to company template","intercompany loan agreement template","loan agreement template word","shareholder loan contract","related party loan agreement template",{"name":196,"credential":197,"reviewed_date":198},"Bruno Goulet","CEO, Business in a Box","2026-05-02",true,{"difficulty":201,"legal_review_recommended":199,"signature_required":199,"notarization_required":182},"advanced",{"what_it_is":203,"when_you_need_it":204,"whats_inside":205},"A Loan Agreement Stockholder to Corporation is a legally binding contract in which a shareholder lends money to the company they own equity in, defining the principal amount, interest rate, repayment schedule, and default remedies. This free Word download gives you a structured, attorney-reviewed starting point you can edit online and export as PDF to document a related-party loan that satisfies IRS, CRA, and lender audit requirements.\n","Use it whenever a stockholder advances funds to the corporation — whether to cover a short-term cash shortfall, fund a capital project, or bridge an upcoming financing round — and both parties need a written record that distinguishes the advance as a loan rather than a capital contribution or dividend.\n","Parties and loan amount, interest rate and accrual method, repayment schedule, prepayment rights, events of default and remedies, subordination to senior debt, representations and warranties, governing law, and signature blocks for both the stockholder lender and authorized corporate officer.\n",[207,211,215,219,223,227],{"title":208,"use_case":209,"icon_asset_id":210},"Founder-shareholders","Lending personal funds to their startup to cover runway before the next round","persona-startup-founder",{"title":212,"use_case":213,"icon_asset_id":214},"Small business owners","Documenting informal cash advances to their corporation for tax and audit purposes","persona-small-business-owner",{"title":216,"use_case":217,"icon_asset_id":218},"Corporate attorneys","Drafting a compliant related-party loan record for a client's closely held corporation","persona-corporate-attorney",{"title":220,"use_case":221,"icon_asset_id":222},"CFOs and finance directors","Formalizing a controlling shareholder's bridge loan before a bank covenant review","persona-cfo",{"title":224,"use_case":225,"icon_asset_id":226},"Private equity investors","Structuring a mezzanine or preferred stockholder loan alongside an equity injection","persona-private-equity",{"title":228,"use_case":229,"icon_asset_id":230},"Family business owners","Documenting intra-family shareholder advances to satisfy estate planning and tax requirements","persona-family-business",[232,236,240,244,248,252,256],{"situation":233,"recommended_template":234,"slug":235},"Corporation lending money back to a stockholder","Loan Agreement Corporation to Stockholder","loan-agreement-stockholder-to-corporation-D418",{"situation":237,"recommended_template":238,"slug":239},"Loan between two affiliated companies under common ownership","Intercompany Loan Agreement","inter-company-services-agreement-D886",{"situation":241,"recommended_template":242,"slug":243},"Short-term unsecured advance with no fixed repayment date","Demand Promissory Note","demand-to-pay-promissory-note-D207",{"situation":245,"recommended_template":246,"slug":247},"Loan secured against corporate assets or stock","Secured Loan Agreement","secured-lumpsum-promissory-note-agreement-D13041",{"situation":249,"recommended_template":250,"slug":251},"Stockholder converting the loan to equity at a future round","Convertible Note Agreement","convertible-note-agreement-D870",{"situation":253,"recommended_template":254,"slug":255},"Third-party bank or institutional lender providing the loan","Business Loan Agreement","loan-agreement-D416",{"situation":257,"recommended_template":258,"slug":259},"Simple fixed-term loan with a single balloon repayment","Promissory Note (Fixed Term)","fixed-term-contract-D13225",[261,264,267,270,273,276,279,282,285,288,291],{"term":262,"definition":263},"Principal","The original sum of money lent by the stockholder to the corporation, excluding interest.",{"term":265,"definition":266},"Applicable Federal Rate (AFR)","The minimum interest rate the IRS requires on related-party loans in the US; charging below the AFR can cause the IRS to impute interest income to the lender.",{"term":268,"definition":269},"Subordination","A clause ranking the stockholder's loan behind senior creditors — meaning senior lenders get paid first in a default or insolvency scenario.",{"term":271,"definition":272},"Event of Default","A defined trigger — such as a missed payment, insolvency filing, or breach of covenant — that allows the lender to demand immediate repayment of the full outstanding balance.",{"term":274,"definition":275},"Amortization Schedule","A table showing each periodic payment broken down into principal reduction and interest, with the outstanding balance after each payment.",{"term":277,"definition":278},"Acceleration Clause","A provision that makes the entire unpaid loan balance immediately due and payable upon an event of default, without waiting for the original maturity date.",{"term":280,"definition":281},"Deemed Dividend","A tax characterization applied when a loan from a corporation to a stockholder — or an undocumented advance from a stockholder — lacks proper form, causing tax authorities to treat it as a taxable distribution.",{"term":283,"definition":284},"Thin Capitalization","A situation where a corporation is funded primarily with debt rather than equity, triggering tax rules in many jurisdictions that limit the deductibility of interest on related-party loans.",{"term":286,"definition":287},"Maturity Date","The date on which the full outstanding principal and any accrued unpaid interest become due and payable.",{"term":289,"definition":290},"Prepayment Penalty","A fee charged if the borrower repays the loan before the scheduled maturity date, compensating the lender for lost interest income.",{"term":90,"definition":292},"A standalone written promise to repay a debt; often incorporated by reference in a loan agreement or used in its place for simpler transactions.",[294,299,304,309,314,319,324,329,334,339],{"name":295,"plain_english":296,"sample_language":297,"common_mistake":298},"Parties and Recitals","Identifies the stockholder lender and the corporate borrower by their full legal names, states the nature of the relationship (percentage of ownership), and records the purpose of the loan.","This Loan Agreement is entered into as of [DATE] between [STOCKHOLDER FULL NAME] ('Lender'), a stockholder holding approximately [X]% of the outstanding shares of [CORPORATION LEGAL NAME], a [STATE] corporation ('Borrower'), for the purpose of [LOAN PURPOSE].","Using a trade name or informal name for either party. If the entity name doesn't match the corporate registry exactly, the agreement may be unenforceable or rejected by auditors and lenders.",{"name":300,"plain_english":301,"sample_language":302,"common_mistake":303},"Loan Amount and Disbursement","States the exact principal amount being lent and how and when the funds will be transferred — lump sum, tranches, or on-demand draw.","Lender agrees to lend to Borrower the principal sum of $[AMOUNT] ('Loan'), to be disbursed as a single lump sum on [DATE] by wire transfer to Borrower's account ending in [LAST 4 DIGITS].","Failing to specify the disbursement method and date. An undated or uncorroborated advance is difficult to distinguish from equity or a gift in a subsequent tax audit.",{"name":305,"plain_english":306,"sample_language":307,"common_mistake":308},"Interest Rate and Accrual","Sets the annual interest rate, the accrual method (simple or compound), and the frequency of interest payments — monthly, quarterly, or at maturity.","The outstanding principal shall bear interest at the rate of [X]% per annum, calculated on the basis of a 365-day year, accruing daily and payable [monthly / quarterly / at maturity] commencing [DATE].","Setting the interest rate below the IRS Applicable Federal Rate (AFR) without realizing the IRS will impute interest at the AFR anyway — creating phantom income for the lender and a non-deductible expense for the corporation.",{"name":310,"plain_english":311,"sample_language":312,"common_mistake":313},"Repayment Schedule","Defines when and how the corporation repays the loan — fixed monthly installments, a bullet repayment at maturity, or a custom amortization schedule.","Borrower shall repay the Loan in [X] equal monthly installments of $[AMOUNT] each, commencing on [FIRST PAYMENT DATE], with a final payment of all outstanding principal and accrued interest due on [MATURITY DATE].","Using vague repayment language like 'when funds are available.' This makes the loan look like a capital contribution and gives the corporation no binding obligation to repay on any schedule.",{"name":315,"plain_english":316,"sample_language":317,"common_mistake":318},"Prepayment","States whether the corporation can repay the loan early, and whether a prepayment penalty applies.","Borrower may prepay the Loan in whole or in part at any time without penalty, provided that all accrued interest to the date of prepayment is paid concurrently.","Omitting the prepayment clause entirely. Without it, the corporation may face an implied prepayment restriction, limiting financial flexibility when cash becomes available.",{"name":320,"plain_english":321,"sample_language":322,"common_mistake":323},"Events of Default and Remedies","Lists the triggers — missed payment, insolvency, dissolution, breach of covenant — that allow the lender to accelerate the full loan balance and pursue legal remedies.","Each of the following constitutes an Event of Default: (a) failure to pay any amount due within [10] days of the due date; (b) Borrower's insolvency, bankruptcy filing, or assignment for the benefit of creditors; (c) material breach of any representation in this Agreement that remains uncured for [30] days after written notice.","No cure period for non-payment defaults. Courts in most jurisdictions expect a reasonable cure window — omitting one can make the acceleration clause unenforceable or invite litigation.",{"name":325,"plain_english":326,"sample_language":327,"common_mistake":328},"Subordination to Senior Debt","Ranks the stockholder's loan behind the corporation's existing or future senior lenders, so the stockholder agrees not to demand repayment while senior debt is outstanding or during a default under senior facilities.","Lender agrees that the Loan and all obligations hereunder are subordinate and junior in right of payment to all Senior Indebtedness of the Borrower. Lender shall not demand or accept any payment on the Loan while a default exists under any Senior Indebtedness.","Omitting the subordination clause when the corporation has a bank credit facility. Most commercial lenders require stockholder loans to be formally subordinated; missing this clause can trigger a covenant violation under the bank agreement.",{"name":330,"plain_english":331,"sample_language":332,"common_mistake":333},"Representations and Warranties","Both parties confirm they have authority to enter the agreement, that it does not violate any other contract, and that the corporation is solvent at the time of execution.","Borrower represents and warrants that: (a) it is duly organized and in good standing under the laws of [STATE]; (b) execution of this Agreement has been duly authorized by its Board of Directors; (c) Borrower is not insolvent as of the date hereof and will not become insolvent as a result of this transaction.","No board authorization representation. Related-party loans between a stockholder and a corporation typically require board approval — an unexecuted board resolution leaves the agreement vulnerable to challenge by minority shareholders or a bankruptcy trustee.",{"name":335,"plain_english":336,"sample_language":337,"common_mistake":338},"Governing Law and Dispute Resolution","Specifies which jurisdiction's law governs the agreement and how disputes are resolved — litigation in a named court, binding arbitration, or mediation first.","This Agreement shall be governed by and construed in accordance with the laws of the State of [STATE], without regard to its conflict of law principles. Any dispute shall be resolved by binding arbitration administered by [AAA / JAMS] in [CITY], except that either party may seek injunctive relief in any court of competent jurisdiction.","Choosing a governing law state with no connection to either party. Some states — Delaware, New York — have well-developed commercial law that lenders prefer, but the choice must be defensible; courts can override a governing-law clause that is purely opportunistic.",{"name":340,"plain_english":341,"sample_language":342,"common_mistake":343},"Entire Agreement and Amendments","Confirms that this written document is the full and final agreement between the parties on the subject of the loan, and that any changes must be in writing signed by both parties.","This Agreement constitutes the entire agreement of the parties with respect to the Loan and supersedes all prior agreements, representations, and understandings. No amendment shall be effective unless made in writing and signed by both parties.","No amendment clause at all, leaving open the possibility that informal emails or verbal promises modify the terms — a common source of related-party loan disputes when the stockholder-lender relationship deteriorates.",[345,350,355,360,365,370,375,380],{"step":346,"title":347,"description":348,"tip":349},1,"Identify both parties with precise legal names","Enter the stockholder's full legal name (or trust/entity name if lending through a vehicle) and the corporation's exact registered name. Include the stockholder's approximate ownership percentage and the state or jurisdiction of incorporation.","Pull the corporation's exact name from its Secretary of State filing — even a minor variation (Inc. vs. Incorporated) can create ambiguity in enforcement.",{"step":351,"title":352,"description":353,"tip":354},2,"State the loan amount and disbursement method","Enter the exact principal amount in numbers and words. Specify whether it is a lump-sum transfer or a draw-down facility, and identify the date and account details for the wire or check.","Keep a bank statement or wire confirmation as corroborating evidence — the IRS and CRA look for paper trails that match the agreement date and amount.",{"step":356,"title":357,"description":358,"tip":359},3,"Set an arm's-length interest rate","Look up the current IRS Applicable Federal Rate (AFR) for the loan term before entering an interest rate. Set the rate at or above the AFR for the applicable term (short-term under 3 years, mid-term 3–9 years, long-term over 9 years).","The AFR is published monthly by the IRS in a Revenue Ruling — check the month of origination, not the month you fill in the template.",{"step":361,"title":362,"description":363,"tip":364},4,"Define the repayment schedule precisely","Choose between monthly installments, quarterly payments, or a bullet repayment at maturity. Insert the first payment date, payment amount, and maturity date. Attach an amortization table as Exhibit A if using installments.","A fixed maturity date — even if the corporation intends to roll the loan — demonstrates that the obligation is real and enforceable, which is critical for tax characterization.",{"step":366,"title":367,"description":368,"tip":369},5,"Tailor the events of default and cure periods","List at least three events of default: missed payment (with a 5–15 day cure window), insolvency or bankruptcy filing, and material breach of any representation. Add any covenants specific to the corporation's financial condition.","Align cure periods with the corporation's actual cash-cycle — a 5-day cure period is too short for a business that pays bills monthly.",{"step":371,"title":372,"description":373,"tip":374},6,"Add a subordination clause if senior debt exists","If the corporation has an existing bank credit line or term loan, include the subordination clause and confirm the language is consistent with the bank's intercreditor requirements. Obtain the bank's consent if required under the credit agreement.","Send a draft of the subordination language to the bank's relationship manager before execution — most banks have a standard form they prefer.",{"step":376,"title":377,"description":378,"tip":379},7,"Obtain board authorization and attach the resolution","Before signing, ensure the corporation's board of directors has passed a resolution approving the loan on the stated terms. Attach a copy of the resolution as Exhibit B.","Minutes of a board meeting or a written consent signed by all directors both work — the key is a signed document predating or contemporaneous with the agreement.",{"step":381,"title":382,"description":383,"tip":384},8,"Execute before funds are transferred","Both the stockholder and an authorized corporate officer must sign the agreement before or on the date of the first disbursement. Store the fully executed original with corporate records.","Use a digital signature platform that timestamps execution — a signed-after-the-fact agreement is a red flag in both tax audits and insolvency proceedings.",[386,390,394,398,402,406],{"mistake":387,"why_it_matters":388,"fix":389},"Setting interest below the IRS Applicable Federal Rate","The IRS will impute interest at the AFR regardless of what the contract says, creating phantom taxable income for the lender and potentially a non-deductible interest expense for the corporation.","Look up the current AFR for the loan term from the IRS Revenue Ruling published the month the agreement is signed, and set the contractual rate at or above that floor.",{"mistake":391,"why_it_matters":392,"fix":393},"No board resolution authorizing the loan","A related-party loan without board approval can be challenged by minority shareholders, voided by a bankruptcy trustee as an unauthorized obligation, or disallowed as a deductible expense.","Pass a board resolution or written consent approving the specific loan amount, interest rate, and repayment terms before execution, and attach it to the agreement as an exhibit.",{"mistake":395,"why_it_matters":396,"fix":397},"Omitting the subordination clause when senior debt exists","Most commercial credit agreements prohibit the corporation from repaying related-party debt ahead of senior lenders — a missing subordination clause can trigger a covenant default under the bank facility.","Include a subordination clause ranking the stockholder loan behind all senior indebtedness, and notify the corporation's bank before execution if the credit agreement requires consent.",{"mistake":399,"why_it_matters":400,"fix":401},"Using vague repayment language instead of a fixed schedule","Language like 'repayable when the company has sufficient cash flow' signals to the IRS and CRA that the advance is equity, not debt — exposing the stockholder to taxation on a deemed dividend.","Specify a fixed maturity date, periodic payment amounts, and an amortization schedule so the repayment obligation is unconditional and commercially reasonable.",{"mistake":403,"why_it_matters":404,"fix":405},"Signing the agreement after funds have already been transferred","A backdated or post-disbursement agreement undermines the legal and tax characterization of the loan — auditors and courts treat it as evidence the transaction was not structured as a genuine arm's-length loan.","Execute the agreement before or on the same date as the first disbursement, and retain the wire confirmation or check copy as corroborating evidence.",{"mistake":407,"why_it_matters":408,"fix":409},"No acceleration or events-of-default clause","Without default triggers and an acceleration right, the stockholder lender has no mechanism to demand early repayment if the corporation deteriorates financially — leaving the lender unsecured and without recourse until the original maturity date.","Include at least three events of default — missed payment, insolvency filing, and material breach — with a reasonable cure period and an explicit right to accelerate the full outstanding balance.",[411,414,417,420,423,426,429,432,435],{"question":412,"answer":413},"What is a stockholder loan to a corporation?","A stockholder loan to a corporation is a transaction in which a shareholder lends money to the company they own equity in, with the expectation of repayment with interest. Unlike a capital contribution, it creates a creditor-debtor relationship — the corporation owes the stockholder a legal debt. A written loan agreement is essential to document the terms and establish that the advance is debt rather than equity for tax and accounting purposes.\n",{"question":415,"answer":416},"Why does a stockholder loan need to be in writing?","A written agreement is the primary evidence that distinguishes a stockholder advance from a capital contribution, gift, or disguised dividend. Tax authorities — including the IRS and CRA — scrutinize related-party loans and will reclassify undocumented advances as equity or taxable distributions, triggering back taxes and penalties. A signed agreement with a fixed repayment schedule, market-rate interest, and board authorization demonstrates genuine debt intent.\n",{"question":418,"answer":419},"What interest rate should a stockholder charge the corporation?","In the US, the minimum rate is the IRS Applicable Federal Rate (AFR) for the applicable loan term, published monthly in an IRS Revenue Ruling. Charging below the AFR causes the IRS to impute interest at the AFR, creating taxable income for the lender. In Canada, the CRA prescribed rate applies. In the UK and EU, transfer pricing rules require an arm's-length rate between related parties. As a practical matter, setting the rate at the AFR or a modest spread above it is the most defensible approach.\n",{"question":421,"answer":422},"Does the board of directors need to approve a stockholder loan?","Yes, in most jurisdictions. Related-party transactions — including loans from stockholders — typically require board authorization under corporate law and the corporation's governing documents. A board resolution or written consent approving the specific loan terms should be obtained before execution and attached to the agreement. Minority shareholders can challenge unauthorized related-party loans, and a bankruptcy trustee can void them if proper procedure was not followed.\n",{"question":424,"answer":425},"What happens if the stockholder loan is not repaid?","If the corporation defaults, the events-of-default clause allows the stockholder lender to accelerate the full outstanding balance and pursue collection through litigation or arbitration. If the corporation becomes insolvent, the stockholder's loan claim ranks as unsecured debt — behind secured creditors and often behind trade creditors — unless the loan is secured against corporate assets. In insolvency, a court may recharacterize an underdocumented stockholder loan as equity, eliminating the repayment claim entirely.\n",{"question":427,"answer":428},"Can a stockholder loan be converted to equity?","Yes, with the right documentation. A convertible note agreement — or a conversion clause added to the loan agreement — allows the outstanding principal and accrued interest to convert into shares at a defined price or valuation cap. This structure is common in startup financing where the stockholder wants repayment optionality but also the ability to participate in an upside round. Standard loan agreements without a conversion clause cannot be converted to equity without a separate amendment.\n",{"question":430,"answer":431},"What is subordination and why does it matter for a stockholder loan?","Subordination is a contractual agreement in which the stockholder lender agrees that their loan ranks behind the corporation's senior creditors — typically a bank or institutional lender. Senior lenders almost always require stockholder loans to be subordinated before extending credit, and most commercial credit agreements prohibit the corporation from repaying subordinated debt while senior debt is outstanding. Including a subordination clause prevents an inadvertent covenant breach and signals to banks that the stockholder understands the capital stack.\n",{"question":433,"answer":434},"Is a stockholder loan to a corporation taxable?","The loan itself is not taxable — neither the disbursement nor the repayment of principal creates income. However, interest received by the stockholder lender is taxable income. If the IRS or CRA determines that the advance was not a genuine loan — because it lacks a fixed repayment schedule, market-rate interest, or board authorization — it may reclassify the advance as a taxable dividend or capital contribution, with different tax consequences for both parties. Proper documentation is the primary defense against reclassification.\n",{"question":436,"answer":437},"Do I need a lawyer to prepare this loan agreement?","For straightforward domestic loans between a stockholder and a small closely held corporation, a high-quality template — completed accurately and paired with a board resolution — is generally sufficient. Engage a corporate attorney when the loan amount is material (typically above $100,000), when the corporation has existing senior debt with subordination requirements, when minority shareholders could challenge the transaction, when the parties are in different countries, or when the loan includes a conversion feature. A one-hour legal review typically costs $300–$600 and is worthwhile for any loan that will appear on an audited balance sheet.\n",[439,443,447,451],{"industry":440,"icon_asset_id":441,"specifics":442},"Technology / SaaS","industry-saas","Founder bridge loans between funding rounds, often structured with a conversion option and subordinated to venture debt or a bank line; AFR compliance critical for US-domiciled founders.",{"industry":444,"icon_asset_id":445,"specifics":446},"Real Estate","industry-real-estate","Majority-shareholder loans to property-holding corporations to fund acquisitions or renovations, with specific attention to thin-capitalization rules that can limit interest deductibility.",{"industry":448,"icon_asset_id":449,"specifics":450},"Manufacturing","industry-manufacturing","Working-capital advances from owner-operators to fund raw material purchases, requiring subordination to revolving credit facilities and careful alignment with bank covenant packages.",{"industry":452,"icon_asset_id":453,"specifics":454},"Professional Services","industry-professional-services","Partner or principal shareholder loans to fund firm expansion or equipment, often structured as demand loans with interest at the applicable federal or prescribed rate to minimize tax friction.",[456,459,462,465],{"vs":90,"vs_template_id":457,"summary":458},"promissory-note-D421","A promissory note is a standalone, unconditional written promise to repay a specific sum by a specific date. A loan agreement is more comprehensive — it includes representations, covenants, events of default, subordination, and dispute resolution that a promissory note omits. For a stockholder loan that will appear on an audited balance sheet or be reviewed by a bank, a full loan agreement provides materially stronger legal and tax protection.",{"vs":460,"vs_template_id":255,"summary":461},"Business Loan Agreement (Third-Party Lender)","A standard business loan agreement is designed for an arm's-length transaction between a corporation and an unrelated lender such as a bank. A stockholder loan agreement adds related-party disclosures, board-authorization requirements, subordination to senior debt, and IRS AFR-compliance language that are specific to the insider lending context. Using a generic loan agreement for a stockholder transaction omits these critical safeguards.",{"vs":250,"vs_template_id":463,"summary":464},"D{CONVERTIBLE_NOTE_ID}","A convertible note is a loan designed to convert into equity at a future financing event, typically at a discount or valuation cap. A stockholder loan agreement is structured for repayment in cash with no equity conversion. Use a convertible note when the stockholder wants the option to receive shares instead of repayment; use this loan agreement when repayment in cash on a fixed schedule is the intent.",{"vs":466,"vs_template_id":467,"summary":468},"Capital Contribution Agreement","D{CAPITAL_CONTRIBUTION_ID}","A capital contribution permanently increases the corporation's equity — no repayment obligation, no interest, no creditor rights. A stockholder loan creates a debt obligation with defined repayment terms and interest. The choice has significant tax and balance-sheet implications: debt preserves the stockholder's ability to recover funds without a dividend distribution, but must be properly documented to withstand reclassification as equity.",{"use_template":470,"template_plus_review":474,"custom_drafted":478},{"best_for":471,"cost":472,"time":473},"Closely held corporations with a single majority stockholder making a straightforward domestic cash loan below $100,000","Free","30–60 minutes",{"best_for":475,"cost":476,"time":477},"Loans above $100,000, corporations with existing bank debt requiring subordination consent, or multiple stockholders with potential for minority-shareholder challenge","$300–$750 (one-hour attorney review and board resolution drafting)","1–3 days",{"best_for":479,"cost":480,"time":481},"Cross-border related-party loans, convertible or secured structures, publicly reporting companies, or loans subject to transfer pricing scrutiny in multiple jurisdictions","$1,500–$5,000+","1–2 weeks",[483,488,493,498],{"code":484,"name":485,"flag_asset_id":486,"note":487},"us","United States","flag-us","The IRS requires related-party loans to charge at least the Applicable Federal Rate (AFR) published monthly under IRC §1274(d); below-AFR loans trigger imputed interest under §7872. State corporate law — particularly Delaware and California — requires board approval for related-party transactions. Thin-capitalization is not codified as a bright-line rule in the US, but excessive debt-to-equity ratios invite IRS recharacterization of interest as dividends under the economic substance doctrine.",{"code":489,"name":490,"flag_asset_id":491,"note":492},"ca","Canada","flag-ca","The CRA requires shareholder loans to be repaid within one year after the corporation's fiscal year-end in which the loan was made, or the full amount is included in the shareholder's income under ITA §15(2). Interest must equal at least the CRA prescribed rate to avoid a taxable benefit. Thin-capitalization rules under ITA §18(4) disallow interest deductions when a non-resident controlling shareholder's debt-to-equity ratio exceeds 1.5:1. Quebec-based corporations must ensure French-language compliance for contracts signed with Quebec counterparties.",{"code":494,"name":495,"flag_asset_id":496,"note":497},"uk","United Kingdom","flag-uk","Loans from participators (shareholders) to close companies are governed by CTA 2010 ss.455–464; if not repaid within nine months of the accounting period end, a 33.75% s.455 tax charge applies to the corporation. Transfer pricing rules under TIOPA 2010 require arm's-length interest rates for related-party loans exceeding £10 million. Companies House disclosure requirements apply to director-shareholder loans above £10,000 in annual accounts. Board approval and minutes are required under the Companies Act 2006 for transactions between a company and a substantial shareholder.",{"code":499,"name":500,"flag_asset_id":501,"note":502},"eu","European Union","flag-eu","EU member states apply varying thin-capitalization and interest-limitation rules under the Anti-Tax Avoidance Directive (ATAD); most cap net interest deductions at 30% of EBITDA. Transfer pricing documentation is required for related-party transactions above country-specific thresholds, typically €1–5 million. GDPR requirements apply to the processing of personal data of individual stockholder lenders in cross-border agreements. France, Germany, and the Netherlands have domestic rules imposing minimum interest rates on shareholder loans that may be stricter than the OECD arm's-length standard.",[504,243,255,505,506,507,508,509,255,251,510,511],"promissory-note-D434","personal-guarantee-D405","non-disclosure-agreement-nda-D12692","adhesion-to-the-unanimous-shareholder-agreement-D848","board-resolution-D78","security-agreement-D915","corporate-governance-policy-D13943","minutes-of-meeting-of-incorporators-D17",{"emit_how_to":199,"emit_defined_term":199},{"primary_folder":164,"secondary_folder":514,"document_type":515,"industry":516,"business_stage":517,"tags":518,"confidence":523},"loans-and-promissory-notes","agreement","general","all-stages",[519,520,521,522],"loan-agreement","stockholder","related-party-loan","financing",0.95,"\u003Ch2>What is a Loan Agreement Stockholder to Corporation?\u003C/h2>\n\u003Cp>A \u003Cstrong>Loan Agreement Stockholder to Corporation\u003C/strong> is a legally binding contract that documents a cash advance made by a shareholder to the corporation in which they hold equity, establishing the parties' rights and obligations with respect to principal, interest, repayment, default, and priority among creditors. Unlike an informal advance or a capital contribution, a properly structured stockholder loan creates an enforceable creditor-debtor relationship — the corporation owes a legal debt to its own shareholder. This distinction matters enormously for tax characterization: a documented loan with a market-rate interest and a fixed repayment schedule is treated as debt; an undocumented advance may be reclassified by the IRS, CRA, or HMRC as a taxable dividend or equity contribution, with materially different consequences for both parties.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Without a written loan agreement, an informal cash transfer from a stockholder to a corporation is a tax audit waiting to happen. The IRS and CRA actively scrutinize related-party advances and will reclassify undocumented transactions as taxable income or non-deductible equity injections, often years after the fact and with interest and penalties attached. Beyond taxation, a missing agreement leaves the stockholder lender without a legally enforceable repayment claim if the corporation faces financial difficulty — a bankruptcy trustee can subordinate or eliminate an undocumented stockholder advance entirely. Banks and institutional lenders also require written subordination of any stockholder loans before extending credit facilities, meaning an undocumented advance can block the corporation from securing outside financing. This template gives you a board-authorization-ready, AFR-compliant starting point that satisfies auditors, satisfies lenders, and protects both the stockholder and the corporation when the repayment relationship needs to be enforced.\u003C/p>\n",1778696350588]