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if you received an eidl loan from the sba you may have already received an email from an sba agent requesting that you send over an llc certificate in this video we're going to show you that it's a very simple document that you can do on your own that you don't have to hire an attorney to do it and we're even going to provide a template so you can do it and send it over to the sba that's what we're going to talk about in this video hello from freedom tax accounting we're an accounting firm where we have been providing quality tax and accounting services now for over 20 years if you're new to this channel we provide strategies for small business owners so they can achieve their financial goals so consider subscribing to our channel now the sba if you got an sba loan an e i e id or loan from the sba the sba is now starting to email the recipients of this loan and they are requesting that you send over an llc certificate now what is an llc certificate and it has a very legal definition but i'm just going to put it in simple terms an llc certificate is just a document that is signed by all the members or the owners of an llc to show the sba that they have officially met they have discussed and they have come into agreement on any issue concerning their llc if you have a corporation this is normally called a board meeting actually if you have a corporation not an llc the sba is going to request a board of directors corporate resolution but since you have an llc they are asking for the llc certificate so the llc certificate is the equivalent of a board of directors corporate resolution documentation basically the sba just one written proof that the members of the llc sat down and they are all in agreement on accepting the loan all right so even if you are a single member llc the sba still wants you to write and sign a document confirming that you are in agreement on accepting the loan this should not come to a surprise because on page seven of the eido loan contract it says that uh within 180 days of accepting the loan you have to send over a certificate of resolution so it was on the contract now let's just look at the sample all right basically it's a very simple uh document and we are going to provide a link to this document in the description below so you can just fill it out basically it's already written out for you you just have to uh on the bold letters here is where you have to change the content so it's where it says name of the lc here you put the name of your llc and it reads we the undersign being all the directors of this limited liability company consent and agree that the following operational resolution was made on and here you're going to put the date and the location of the meeting now we recommend that the location be your business address if you're self-employed and on your schedule c you have your home address as the business address put the address that's on your schedule c okay important that the date that you put the meeting has to be a date that's after the date you received the funds okay so look up the date you receive the funds and the date you do the meeting has to be after that date of receiving the funds then it says we do hereby consent to the adoption of the following as if it was adopted at a regularly called meeting of the managing members of this llc in accordance to with the state law and the bylaws of this llc by unanimous consent the managing members decided that once again here name of the lc here you put the name of your llc accepts a covet 19 eido loan for the amount of and here you put your loan amount that you got from the sba via sba loan application number and here you put your eid loan application number and to use the funds for operational expenses of this llc during the covert 19 economic hardship the managing members of this limited liability company are authorized to perform the acts to carry out this company's resolution then on the bottom here you put the name of each owner of each member of the llc you have to have the signature the printed name and the date so it's a very simple document okay now we are going to provide a link where you can download that this template and you just have to fill it out with your information and send it out to the sba so as you can see it's a very simple document you don't have to pay an attorney to do it you basically download the template the template is going to be in the description of this video and swap the information with your llc information and send it over to the sba now you can always contact us we are in tax season and we are authorized to help individuals and businesses in any tax related issue and work for individuals and businesses that are located in any of the 50 u.s states if you want a consultation on any ppp eid alone employee retention credit consultation we are providing consultations as well you can contact us at 407-344-1012 and remember that we are part of freedom group we are a group of four companies where we do tax accounting immigration real estate insurance financial planning so we can help you in many many ways okay so thank you for watching this video go down get the link download the template get that llc certificate over to the sba and remember to like this video and share it with other business owners that can take advantage of this information thank you for watching god bless you bye
Thanks for your comment Arnita Fazio, have a nice day.
- Tran Armer, Staff Member
hi i'm chris hearn the founder and ceo of fountainhead we're the nation's leading small business lender and today i want to talk to you a little bit about documentation that doesn't sound like a very sexy term to discuss on a video but we sometimes hear from people that they think that sba loans take a tremendous amount of documentation and there's a little bit of truth to that i mean it's not as bad uh the discrepancy between conventional loans and sba loans as it was say you know before the last great recession there was something that came into effect called dodd-frank which required a lot of conventional lenders to actually over document a lot of the the submissions as well so at this point there's not much difference if you go to a bank to get conventional financing versus coming to someone like us for sba financing the documentation is typically very similar it is going to be a little bit of effort on your part and it does help to be organized but the alternative is you can go and get a unsecured loan probably a smaller loan amount but you're going to pay a lot more for it you're going to have much higher interest rate on that loan you probably won't have as long of a repayment term as you would with an sba loan and frankly there's a lot of other provisions and covenants and other things that are probably not going to be very palatable to you so i know it's sometimes a little bit more work to do an sba loan but i think it's really worth it for you because typically the big advantages of sba is much lower down payment much longer repayment terms very competitive interest rates and no loan covenants so you put all those together it's worth you spending an hour on a saturday afternoon assembling all the documentation you need for your sba lender and by the way make sure you're working with somebody who's a specialist at this who actually does this regularly for a living i would actually even encourage you to work with a preferred lending partner of sba that's what's called a plp designation these are the folks that actually have their own credit approval on their own they don't have to submit anything to sba you won't be their guinea pig those are the folks that you're probably going to be interested in working with we happen to be one of them ourselves and we'd love to try and work with you as well so reach out to us when you're ready i think you're going to find sba lending is a lot better than it used to be doesn't take nearly the amount of documentation that you may imagine it does and ultimately it's going to be much more beneficial to you as a business owner
Thanks Adolph your participation is very much appreciated
- Tran Armer
About the author
I've studied collections care at Centralia College in Centralia and I am an expert in world englishes. I usually feel rejected. My previous job was fish hatchery specialist I held this position for 14 years, I love talking about rubik's cube and kite flying. Huge fan of Ed Sheeran I practice yoga and collect disneyana.
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