tiktok³ÉÈË°æ

All Countries
Corporate Governance
Founder Loan Agreement

Founder Loan Agreement Template for Canada

Create a bespoke document in minutes,  or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Founder Loan Agreement

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Founder Loan Agreement

"I need a standard Founder Loan Agreement for a $100,000 loan to my tech startup, with quarterly interest payments at 5% per annum and full principal repayment due by March 1, 2025."

Celebrated by
Collaborations with
Investors
Document background
The Founder Loan Agreement is a crucial document used when a company founder provides debt financing to their business, typically during growth phases or when traditional financing options may be limited. This agreement, governed by Canadian federal and provincial laws, must carefully balance the founder's interests as a creditor with their duties as a company insider. It needs to comply with Canadian tax regulations regarding prescribed interest rates for related-party loans and corporate law requirements for related-party transactions. The document should address key elements such as repayment terms, security (if any), subordination to other debts, and potential conversion rights, while ensuring transparency for other stakeholders and compliance with corporate governance requirements.
Suggested Sections

1. Parties: Identifies the founder as lender and the corporation as borrower, including full legal names and addresses

2. Background: Explains the context of the loan, the founder's relationship with the company, and the purpose of the funding

3. Definitions: Defines key terms used throughout the agreement

4. Loan Amount and Purpose: Specifies the principal amount of the loan and its intended use

5. Interest Rate: Details the applicable interest rate, calculation method, and payment frequency

6. Repayment Terms: Outlines the repayment schedule, including maturity date and any installment payments

7. Representations and Warranties: Standard declarations by both parties regarding their capacity and authority to enter into the agreement

8. Events of Default: Defines circumstances constituting default and consequences thereof

9. Notices: Specifies how formal communications between parties should be made

10. General Provisions: Standard boilerplate clauses including governing law, amendments, and assignment

Optional Sections

1. Security: Include when the loan is secured by company assets or other collateral

2. Subordination: Required when the founder loan needs to be subordinated to other company debt

3. Conversion Rights: Include if the loan can be converted into equity under certain conditions

4. Early Repayment: Optional provisions for prepayment rights and any associated penalties or bonuses

5. Board Approval: Include when corporate governance requires formal board approval for the loan

6. Tax Provisions: Specific tax-related clauses when there are particular tax implications to address

7. Interest Rate Adjustment: Include when interest rate may need to adjust to maintain compliance with prescribed rates for related-party loans

Suggested Schedules

1. Repayment Schedule: Detailed breakdown of payment dates and amounts if installment payments are required

2. Security Description: Detailed description of any assets or collateral securing the loan

3. Corporate Resolution: Copy of the board resolution approving the loan agreement

4. Conversion Terms: Detailed terms and conditions for conversion rights if applicable

5. Existing Security Interests: List of any existing charges or security interests on company assets

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions


































Clauses




























Relevant Industries

Technology

Manufacturing

Professional Services

Retail

Healthcare

Financial Services

Real Estate

Media and Entertainment

Software

E-commerce

Biotechnology

Clean Technology

Consumer Goods

Education

Relevant Teams

Legal

Finance

Executive

Treasury

Tax

Compliance

Corporate Governance

Board of Directors

Company Secretariat

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Founder

Company Director

Corporate Secretary

General Counsel

Legal Counsel

Financial Controller

Finance Director

Corporate Treasurer

Board Member

Company Secretary

Tax Director

Compliance Officer

Investment Manager

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Founders Agreement With Vesting

A Canadian-law governed agreement establishing founder relationships, equity distribution, and vesting arrangements in a newly formed company.

find out more

Founders Shares Agreement

A Canadian-law governed agreement establishing share ownership rights, obligations, and governance arrangements between company founders.

find out more

Founder Stock Restriction Agreement

A Canadian-law governed agreement that establishes terms for founder share ownership, including vesting schedules and transfer restrictions.

find out more

Founders Contract

A Canadian law-governed agreement establishing the fundamental rights and obligations between company co-founders, including equity distribution, roles, and exit provisions.

find out more

Pre Incorporation Founders Agreement

A Canadian law-governed agreement establishing rights, responsibilities, and ownership structure between founders prior to company incorporation.

find out more

Startup Equity Agreement

A Canadian law-governed agreement establishing terms for startup equity issuance, ownership, and transfer, including shareholder rights and obligations.

find out more

Startup Advisor Equity Agreement

A Canadian law-governed agreement establishing the terms of engagement and equity compensation between a startup and an advisor.

find out more

Founders Service Agreement

A Canadian-law governed agreement establishing the service relationship between a founder and their company, including roles, compensation, and mutual obligations.

find out more

Founder Employment Agreement

A Canadian law-governed agreement establishing employment terms and special provisions between a company and its founder(s), including equity arrangements and key responsibilities.

find out more

Co Founder Vesting Agreement

A Canadian law-governed agreement establishing terms for co-founder share vesting, including vesting schedule, conditions, and mutual rights and obligations.

find out more

Founder Repurchase Agreement

A Canadian law-governed agreement detailing the terms and conditions for a company's repurchase of shares from its founder(s).

find out more

Co Founder Exit Agreement

A Canadian legal agreement governing a co-founder's exit from a business, including share transfers, settlements, and ongoing obligations.

find out more

Founder Loan Agreement

A Canadian law-governed agreement documenting a loan from a founder to their company, including loan terms, conditions, and compliance requirements.

find out more

Founder Stock Purchase Agreement

A Canadian law-governed agreement documenting the purchase of company shares by founder(s), establishing share ownership terms and mutual obligations.

find out more

Founder Shareholder Agreement

A Canadian-law governed agreement establishing rights and obligations between founding shareholders, including ownership, management, and exit provisions.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: /our-research
Oops! Something went wrong while submitting the form.

³Ò±ð²Ô¾±±ð’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; ³Ò±ð²Ô¾±±ð’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our for more details and real-time security updates.

Read our Privacy Policy.