Signature Block Money Transfer Agreement Template Made Easy

Signature block money transfer agreement template

approved for $120,000 so a couple of videos ago I showed you guys how the SBA reached out to me saying that I could apply up to $150,000 well I wanted to apply for $120,000 portion and guess what?I've been approved and they sent me this email saying that your SBA economic injury disaster loan application is approved so what I'm going to do is in this video I'm gonna break down the contract and the documents that they're asking me to sign whether am I going to pull the trigger on this or not so let's go and play the intro music and come back and I'll show you guys break down the economic injury disaster loan application process hey what's going on guys this is Sam Kwak here one of the Kwak Brothers and many of you guys apply for the economic injury disaster loan within the SBA program some of you guys might be waiting maybe you've been approved like I am and in this video I'm gonna go and break down the document in the contract that the SBA is having me sign it won't break down give you my commentary on my thoughts whether this is a good program not a good program and as always going to subscribe to a channel if you want more updates and breakdown to SBA programs stimulus programs as well as real estate investing now just another reminder for you guys saying that I am NOT an attorney I am NOT an accountant I'm not a financial professional so any interpretation of this contract are simply my opinion in my own perspective be sure to consult with an attorney in fact right after this video I'm gonna go and call my attorney and start reviewing this contract together I haven't really dug deep into the contract just yet so this is gonna be my first time diving really deep and getting to the details again please talk to an attorney for your business for your contract I'm just simply providing my commentary my own opinion about the e IDL program now what I'm gonna do is I'm gonna go and share my screen to show you guys the loan authorization agreement which is the contract for the EIDL I got my contract reading glasses here not for my eyesight but this is to block any blue lights or UV rays so here we go so let's go ahead and start from the top and this is a really long contract if I were to review everything this is gonna take about an hour so what I'm gonna do is I'm gonna go and highlight the most important things the things that stand out the most and I'll make a separate full review of the contract on our Facebook group which is the landlord and passive income mastermind Facebook group so if you have not joined that group yet the link is down below in the video description go and click on the face group join the group and I'll have a full long review of the contracts but I'm just gonna go in highlighting again the most important thing so here it is known authorization in agreement right out of the gates is showing me how much I'm borrowing hundred twenty thousand dollars with the principal and interest payment of five eighty five monthly for thirty years now it's saying that for twelve months from the date of the promissory note I don't have to make any payments so the five eighty five payment won't begin after the 12 months of a deferment period that's when it's gonna start kicking in again thirty years for 3.75 percent interest rate which is you know rather low it's actually pretty good pretty decent not too bad the next big thing I see here is the collateral part where it's basically saying that if I'm borrowing more than $25,000 under the EIDL I have to pledge collateral as part of borrowing the money from the EIDL now I'm not gonna go through the whole thing it's basically saying that SBA will have a full control over the assets and different security and different collateral of my business so my office equipment any non tangible assets those are all going to be secured so basically if I don't end up making the payments and I go default on the SBA loan SBA has a right to come and seize my assets in my business if I were to become a default so there's a lot of stringent requirements here but I get it right this is a lot of money that they're giving out they just want to have protection for themselves as well the next three big things I see here are more requirements by the SBA it's basically saying that I'm not allowed to sell any collateral or sell or transfer any collateral without written consent from the SBA I I can't get any financing or any other loans to pledge the collateral without the consent of F's VA it also says that I can only use the funds solely for working capital to alleviate economic injury caused by disasters so I can't use this to go and pay off other loans or expand or anything like that I can only use it for operating expenses and they're gonna charge me $100 fees to do so requirements for the use of loan proceeds and receipt this is basically saying that I have to keep all records contracts receipt invoices any amount that I've used auto loan I have to keep any records of that and it's also saying that the SBA has the right to come and audit me to see how I spend the money so get more requirements more auditing more control by the SBA totally get it because they're giving you the loan another big item that I'm seeing here is that SBA is demanding that I sign and return this document within two months of receiving this so within the next two months I have to sign and return it if I don't then it will be cancelled and I won't have that offer anymore the next item I'm seeing here is the compensation from other sources so it's basically saying that if I apply for other disaster assistance or if I get any other assistance from other entities I have to let SBA know that I received other funds as it relates to economic injury from the disaster of Cobie 19 pandemic duty to maintain hazard insurance this is basically saying that SBA is requiring me to hold an insurance for my business if I don't have insurance SBA is going to bar me and restrict me from getting any other feature disaster assistance or SBA financial assistance if I don't have the insurance that the SBA is requiring me to do so the next big item I'm seeing here is the books and records part where SBA is demanding that I have clean books I record everything all operating statements must be reported documents such as insurance policies tax returns and related filings records of earning distributed and dividends paid so a lot of record-keeping that the SBA is demanding the big thing that I'm seeing here at this point is that the SBA could demand an audit being done by an accountant and the borrower view the business needs to pay for a public accountant to get that audit done so at any time the SBA can say hey we're gonna do an audit of your company go and hire a public accountant and go in furnish a review a report so that we can go and check out how you use the funds and how you're doing with your business you know this is a good one borrower authorizes all federal state municipal authorities to furnish reports of examination records and other information related to the condition and affairs of borrowers and any desired information from such reports returns files and records of such authorities upon request of SBA so this is basically saying hey you are going to let the federal government state government and local municipality to pretty much come and take information about your business and hand it over to the SBA so a lot of restrictions a lot of control by the SBA again I I understand this is the government's way of saying hey we'll give you money but you have to let us in and you know control a little bit of your business here so further down the line I'm just gonna keep on moving along and I'll highlight some important things again if you want a full-blown review of this entire contract I'll go and leave it in our Facebook group and if you enjoyed the breakdown so far going smash the like button as it helps our YouTube algorithm help us get this video out to as many people as possible so that they can get a little preview on what to expect from the e IDL program okay so the next big item that gonna highlight here is the borrower's certification this is basically saying that there's no adverse condition that was changed in your business so no leads no bankruptcies since you've applied another big thing I'm seeing here under this section is saying that there's no fees to be paid to attorneys or accountants for services provided to you in connection with applying or closing this loan so I don't know if that also applies to counsel because I'm thinking about hiring an attorney to represent me and get information about what I can cannot do under this loan so if I'm reading this correctly SBA is pretty much saying that you can't hire an accountant to help you review this loan document so that you can make a better decision I don't know if that's a good thing or not because that obviously restricts your ability to be informed to make a good decision whether or not you want to pull the trigger on this program and down below here are the consequences of obviously lying and misusing the funds so it says whoever wrongfully miss applies the proceeds of an SBA disaster loan shall be civilly liable to the administrator in the amount equal to one and one-half times the original principal amount of the loan under 15 USC US Constitution 636 B and so basically if you if you lie to the SBA or you misuse of funds from the loan basically you can be liable for the entire amount of the loan or by one and a half times one hundred fifty percent of the loan amount so they're pretty you know they're they're pretty much saying hey if you do us wrong we'll do you dirty and then it you know we'll do some a lot of bad things too yeah you definitely don't want to screw up with the SBA and mess with the e ideal program okay it says result of violation of this loan authorization agreement if the borrower violates any of the terms of the condition of this loan authorization agreement the loan will be in default and BMA declare all or any part of your indebtedness immediately due and payable SPS failure to exercise its right under this paragraph will not constitute a waiver so basically again if you violate any of the contract and I'll go and give the full breakdown another video in our group basically they'll come and seize all of your properties and your loan amount is due immediately there's no 30-year repayment none of that okay disbursement alone this is basically saying that the SBA is up to six months to give you the loan amount after it has been signed so I don't know how I feel about this again because some businesses may then need this money right away right now because they're going through such a hardship that they don't have six months right comes six months they may have to file bankruptcy or they have to foreclose on properties and they have to layoff people so I don't know if six months is ample time but again this is the government and again I'm not saying our government is terrible it's it's great that we have these types of programs but a lot of times things are slow and fortunately that's the way it is okay let's go and continue resolution of Board of Directors this is basically saying if you have a corporation you have to do a resolution more record-keeping saying that hey you received the money from the SBA so that's pretty much the loan authorization part there's other information in regards to lobbying you can't use the money to lobby from the Congress this is a poster for equal opportunity that you have to post on the side of your business it's also in Spanish which is cool all right so here it is the note it promised to pay one hundred twenty thousand dollars pretty simple right collateral means any property taken as security so payment term 585 every month beginning twelve months from the date so 12 months of deferment and 30 year term and here's what constitutes default of this loan and they have a pretty long list here I'm not going to go through everything but it's basically saying fails to comply with the provision of the note or the loan authorization agreement defaults on any other SBA loan cells or transfer any of the collateral making any misleading representations to SBA defaults on any of the loan agreements fails to pay any taxes when do if the borrower goes to any bankruptcy or insolvency the SBA pretty much thinking that you can't pay back the loan if you die reorganizes merges or consolidates with any other businesses becomes the subject of civil or criminal right so all the things that constitute as default is it's listed there and further down the page here are the SBA's right if there is a default so it says without notice or demand or without giving up any of its rights sba may require immediate payments of all mounts under this note have a recourse to collect all amounts owing from the borrower file suit or obtain judgment take possession of any collateral sell lease or otherwise dispose of any collateral at public or private sale with or without advertisements so the SBA pretty much can come in take your possessions right and sell the property to you basically liquidate them and that's pretty much what happens if you default on this loan and further down the page here is the security agreement this is basically securitizing any collateral so all the collateral that that I am right office equipment sudio equipment right in tangible or intangible assets this is what its securitizing my business so here it is for $120,000 I am granting security interest to the SBA of any possession that I own within the business so for $120,000 here all the rights that the SBA has collateral description so here it is just a repeat of pretty much what was mentioned in the loan authorization agreement right inventory equipment instruments chattel paper deposit account checking accounts okay it restricts my ability to transfer any collateral right so I can't transfer these camera equipments to other businesses without the consent of the SBA I have to maintain the equipment and SBA apparently has a right to come and inspect the collateral if they want to I think and come into my business and check out my stuff I got their cameras nice look at that right they hey these computers look awfully nice it looks like if you default we'll get these computers right so obviously you can see all the rights that the SBA has if you default right the security agreement pretty much the plates all of that okay perfection of the security interest this is pretty much using the Uniform Commercial Code to perfect it and here it is here's the provision for what constitute as default if the borrower makes any material false representation right lies or misleads the SBA to believe in certain false lies or pretense then that could constitute as default as well so pretty much everything else is general contract language fright lingo that applies to every other contract so overall here are my thoughts about the eid ell program under the sba there's clearly a lot of restrictions a lot of Liberty that's being taken away with this loan and obviously the SP can come in and audit you and you have to pay for the audit expense if you're borrowing more than $25,000 you're pretty much pledging everything your business that's collateral and if you're in default the SBA can come in and seize your equipment take your assets and sell them as they wish so there's a lot of restrictions and there's a lot of liberty and freedom being taken away from being able to operate a free business so I'm not really sure if I want to take this loan I don't think I want to I do still want to have a conversation with an attorney before I sign anything but with the whole programs that says that I can't hire an attorney or an accountant to represent me in connection to closing this loan that is a red flag on its own so I don't know if I want to sign this I won't I think I want to walk away again I'll have a conversation with my team and my brother and make a final decision but overall I don't think I'm gonna move forward with the EIDL loan simply because there's a lot of restrictions a lot of control by the SBA and quite frankly I don't absolutely need it I mean my original idea was to go and use this fund to refinance um my owner financed properties and and pay off certain things but it sounds like I can't even do that I has to be for working capital and operating expenses which quite frankly don't need right now so I'll probably end up walking away from the e I do mainly because after reading the terms in agreement I'm not a big fan of any of the terms any of the restrictions and the control that the SBA has and again if you want to see a full detail breakdown of this contract I'll go and make a separate video in our Facebook group landlord and passive income mastermind group the link is down below in the video description as always if you wanted to see more breakdowns more updates with stimulus program SBA programs as well as we're all staying investing be sure to subscribe to your channel and hit the bell notification icon if you want future updates from our channel