Loan / Borrowing / Financing Authorization Resolution Template

LOAN / BORROWING / FINANCING AUTHORIZATION RESOLUTION TEMPLATE FAQ

What is a financing authorization resolution?

A Loan / Borrowing / Financing Authorization Resolution is a formal approval by a company’s board, members, or shareholders authorizing the company to borrow money or enter financing arrangements. Lenders often require it to confirm that the company has authority to sign loan documents.

When is it needed?

It’s commonly needed when applying for bank loans, lines of credit, equipment financing, SBA loans, private lending, or refinancing. It can also be used to authorize guarantees, collateral pledges, or specific finance transactions.

What should it include?

Include: entity name, the authorized financing type, maximum borrowing amount, approved lenders (optional), collateral authority (if any), and who is authorized to negotiate and sign documents. This template includes limits, multiple signer options, and a certification section.

Who should approve it — directors, members, or shareholders?

It depends on the entity type and governing documents. Corporations usually use a board resolution; LLCs may require a member or manager resolution; some major financing may require shareholder approval. This template includes a checkbox to select the approving group.

Does it need to be notarized?

Usually not, but some lenders request notarization. This template includes an optional notary section.

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