Free Small Business Loan Agreement

This Small Business Loan Agreement (the “Agreement”) is entered into on this 5th day of December, 2050, by and between:

Lender:
[Your Company Name]
[Your Company Address]
Phone: [Your Company Number]
Email: [Your Company Email]

Borrower:
Tech Innovations LLC
456 Innovation Drive, Suite 300
Tech City, CA 94000
Phone: (555) 987-6543
Email: info@techinnovations.com
Tax ID: 12-3456789

RECITALS

WHEREAS, the Lender agrees to loan a certain amount to the Borrower for business purposes, and the Borrower agrees to repay the loan according to the terms set forth in this Agreement;

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows:

1. Loan Amount and Disbursement

The Lender agrees to loan the Borrower the sum of $500,000 (the "Loan Amount"). The Loan Amount will be disbursed to the Borrower's designated business account (Account Number: 123-456-789) on or before January 1, 2051.

2. Interest Rate

The loan will bear an interest rate of 5.25% per annum, calculated on the outstanding balance of the loan. Interest will accrue monthly on the remaining loan balance, starting from the disbursement date.

3. Repayment Terms

• The Borrower agrees to repay the Loan Amount in 60 equal monthly installments of $9,447.47 each, beginning on March 1, 2051, and continuing on the 1st day of each month thereafter.

• The final payment will be due on February 1, 2056, or when the Loan Amount and any accrued interest are fully paid.

4. Prepayment

The Borrower may prepay the loan at any time without penalty. Any prepayment will first apply to accrued interest, with the remainder applied to the principal balance.

5. Late Fees

If a payment is not made within 10 days after the due date, the Borrower will incur a late fee of $150 per day until the overdue payment is made.

6. Use of Loan

The Borrower agrees to use the loan exclusively for business purposes, including but not limited to:

• Research and development of new technology products.

• Expanding the business operations by opening a new office in Tech City.

• Purchasing equipment and software to support new product lines.

7. Collateral

To secure this loan, the Borrower provides the following collateral:

• All business equipment, including computers, servers, and office furniture located at 456 Innovation Drive, Tech City, CA.

• The business’s intellectual property portfolio, including patents for the Borrower's technology.

8. Default

The following will constitute an event of default:

• Failure to make a payment within 30 days after the due date.

• The Borrower becomes insolvent, files for bankruptcy, or liquidates assets.

• The Borrower breaches any term of this Agreement and does not cure the breach within 15 days of receiving written notice.

Upon default, the Lender may declare the entire outstanding loan balance, including accrued interest, immediately due and payable.

9. Warranties and Representations

The Borrower warrants that:

• The Borrower is duly authorized to enter into this Agreement.

• The loan will be used solely for legitimate business purposes as outlined.

• The financial statements provided to the Lender are accurate, and there are no pending or threatened lawsuits against the Borrower.

10. Governing Law

This Agreement shall be governed by and construed by the laws of the State of California, without regard to its conflict of law principles.

11. Dispute Resolution

Any disputes arising from or relating to this Agreement shall be resolved through arbitration in San Francisco, California, by the rules of the American Arbitration Association.

12. Miscellaneous

• This Agreement may be amended only in writing and signed by both parties.

• The Borrower agrees to notify the Lender of any change in business structure or operations that could affect the loan.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

[Your Name]

[Your Company Name]

Senior Loan Officer
[Date]

Emily Carter
CEO, Tech Innovations LLC
[Date]

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