EIDL Loan Update - Board Resolutions and Certificates - YouTube

Yo what's going on everybody? Thanks for joining  me today. Today is Tuesday December 1st and I'm  

going to be talking about some EIDL loan updates.  But first, if you could subscribe to my channel  

that'd be awesome and give this video a like.  Also leave me a comment below if you have any  

questions, concerns, or anything like that. And  let's just dive into it. So what I'm going to  

be talking about today is the EIDL loan and what's  been going on lately okay. So if you got your loan  

approved months ago you know, no problem you've  been using your money like you're supposed to and  

all that. And out of nowhere, the SBA emails you  and asks for more information for more documents.  

And specifically, they're asking for like a  corporate board resolution or maybe an LLC  

Certificate. Something of that sort and you know,  you might be freaking out, you don't know what  

the hell this is. So that's what I'm going to  try to explain to you in this video, what those  

things are and how to handle this. Oh and before I  forget, they also are asking for a certificate of  

hazard insurance. So let's just dive into what  these things are. So first, a Corporate Board  

Resolution. So a corporation usually should have a  board of directors you know, that oversees the the  

decisions of the corporation. A board resolution  is a document that officially documents decisions  

that the board of directors make and they, and  it's documented on paper, in writing, and it's  

like a legal document. So it's just like a record  that the corporation keeps to make sure you know,  

these decisions were made on this date, and it was  recorded in writing, and all that stuff. Some of  

my clients have been receiving emails from the SBA  with them requesting corporate board of directors  

resolutions on the approval of the SBA loan. So  let me read to you what some of these emails look  

like. So from this email it says "Please provide  a board resolution that includes a statement  

that the board held a meeting. A statement that  the board authorizes acceptance of the SBA loan  

and specifying the loan amount. A statement  designating an individual or individuals by name  

and title authorized to sign the SBA loan closing  documents. The resolution should be dated and  

signed by at least one board member. The signature  should also include each board member's title and  

it should include the application number." So  it looks like a pretty basic board resolution  

document. If you were to google "board resolution  templates" online, you're going to see that's like  

a one-page document that pretty much outlines  most of those things that they are, that they're  

requesting. Like the meeting dates, they have the  the signature of a board member to have appointed  

somebody to sign for the loan document,  and the loan you know, all those things. So  

if you're unsure about whether a specific board  resolution works for you, like a template,  

definitely talk with an attorney. This is not  something that I'm an expert in. So you know,  

I'm weary to recommend you go to like Up Council  or Legal Zoom or something like that. Just talk  

with an attorney, a reputable attorney about this  and they should be able to help you out okay. Now  

that's for corporations, for LLC's, partnerships,  it's little different. For LLC's they have,  

they're requesting what's called a Certificate.  The Certificate is also like a legal document.  

It's a way for LLC members to record their  decisions on paper, and in writing, and to  

keep record of it. And so you know, they're  asking for the same thing, it's just called  

an LLC Certificate. Now let's move on to hazard  insurance. Now "hazard insurance" is a term used  

usually for a home you know, personal property,  and it's insurance that is used to protect your  

your home, your building, and the contents  inside of the building. Now if you have a  

business and let's say you office in the leased  office, you don't actually own the building.  

So you don't really need hazard insurance for  the building. So you'll need insurance for your  

personal property within your office. That  protects it from like fire you know, theft,  

damage, all that crap okay. That's what hazard  insurance pretty much is. Now I see in this  

email that it says like liability insurance does  not meet the requirements of hazard insurance.  

I am also not an insurance expert. So I don't know  you know why that wouldn't be the case because you  

know our business has liability insurance, it  covers the property within our leased office.  

So if it were ever stolen or damaged or anything  then insurance would cover that property. So I'm  

not sure you know, this is where you might  want to talk to an insurance professional  

because I wouldn't know what the difference  is. Maybe the difference is like flooding or  

fire or something like that you know. So just  definitely talk with an insurance professional  

to see what's going on there and if you have  proper coverage for your property. Because  

the SBA will be asking you for proof of that  insurance as part of your loan contract. You know,  

especially if your loan was greater than $25,000,  your personal property will be used or your  

business property will be used as collateral  for the loan which means that they want that  

property protected with insurance. So as part of  your loan contract, if you didn't already have  

insurance for your property you must get insurance  for your property and submit proof of it to the  

SBA. So is all this really a big deal? I would say  no it's not really a big deal, it's just the you  

know, the SBA is probably slowing down in terms  of how many new EIDL applications they're getting  

and they're finally following up on you know,  meeting the requirements stated in the loan  

contract. And they just want to cover the bases  you know, like they want to make sure that the  

companies are legitimately making these decisions,  they're legitimately companies, and that you have  

the proper insurance that you promised that you  would have. That kind of thing okay. So not a  

big deal. A Board Resolution is not really  a big document like I said, it's a one pager  

that you can probably fill out on your own. But  if you really want it to be legitimate, definitely  

get in touch with an attorney to do that. And then  get in touch with your insurance professional to  

make sure you have the proper insurance coverage  for your business okay. Okay, to shift aside from  

that there's still plenty of funding left over  for the EIDL program if you haven't applied for it  

yet. It's getting you know, close to the deadline,  the the program ends December 31st of this year.  

So if you're still on the fence about it, I would  just apply and see you know, if you get approved  

or not. And you know, if you get declined, you  then have six months to apply for reconsideration  

to try to get approved after you after your  decline okay. We're still working through  

a bunch of reconsiderations. We've gotten more  reconsiderations approved which is pretty awesome.  

I was hope, I was feeling hopeless about the  whole process because the SBA seemed to be  

so overwhelmed with everybody's applications and  you know, to see these approvals come in has been  

you know, bringing me a little bit  more hope for some of my clients. So  

yeah, if you need help with reconsiderations  definitely reach out to me. Don't reach out to  

Tommy on Instagram or whatever you see them  in my comments. That is all BS right there. So  

reach out to me if you need help. Or if you  have any questions just leave them below in  

the comments. I'd be happy to try to answer them  for you as best as I can. And that's all I've got  

for today. Thanks for joining me. I hope you had  a great thanksgiving over the past weekend. Again  

if you haven't done so already, please subscribe  to my channel for up to date news about anything  

pandemic/financing related. Smash that like  button. If you enjoyed the content of this video,  

share this video with your friends and  family who you think might find it useful.  

And of course leave me comments below if you  have any questions, concerns, if you want to  

tell me my hair looks shitty whatever it  is, okay. So take care for now and stay  

safe.