Do founders need to disclose personal directors' loans when raising SEIS or EIS funding?

Yes, personal directors' loans must be disclosed when raising SEIS or EIS funding. This is both a legal and practical requirement.

**How disclosure happens:** - **SeedLegals** — directors' loans and their conditions appear as part of the formal disclosures letter required during the fundraising process - **Balance sheet** — the loans are shown in your company's financial statements, which investors will review - **Seedrs** — when you drill into the detailed information on Seedrs (a common platform for these rounds), personal investment details are visible

**Legal basis:** Directors have a fiducial duty to disclose any loans they have made to the company and the terms attached to them. This is a formal obligation, not optional.

**Why this matters:** Members noted that disclosure can highlight disparities between founder skin-in-the-game and investor cash contributions, which investors will factor into their decision-making. One member reflected on the difficulty of equating years of unpaid work against cash investment, but the consensus was that transparency is required regardless.