Q: For a sole proprietor, do we need a resolution of authority always, even if it is a DBA business name.
A: A lender’s intent is to have the borrower certify that they are, as the individual signing the loan documents, indeed the person that formed and is still doing business as a sole proprietorship. Whether or not the sole proprietor is doing business under his or her own name or under a DBA does not change the need for this document. A Sole Proprietorship Resolution of Authority accomplishes that purpose as we outlined in today’s webinar. In submitting this document, the sole proprietor identifies the proprietorship, stating that he or she is the founder and sole owner of the business and that the business is a sole proprietorship. It contains all the key elements of a borrowing resolution. As always in questions of documentation, be guided by legal counsel.
Course overview: Commercial Loan Documentation