EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO RULE 13a-14(a) OR RULE 15d-14(a)
OF THE SECURITIES EXCHANGE ACT OF 1934
AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Dean L. Cash, certify that:

1. I have reviewed this quarterly report on Form 10-Q of ATEL 16, LLC;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 13, 2014

/s/ Dean L. Cash

Dean L. Cash
Chairman of the Board, President and Chief Executive
Officer of ATEL Managing Member, LLC (Managing Member)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO RULE 13a-14(a) OR RULE 15d-14(a)
OF THE SECURITIES EXCHANGE ACT OF 1934
AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Paritosh K. Choksi, certify that:

1. I have reviewed this quarterly report on Form 10-Q of ATEL 16, LLC;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 13, 2014

/s/ Paritosh K. Choksi

Paritosh K. Choksi
Director, Executive Vice President and Chief Financial
Officer and Chief Operating Officer of ATEL Managing
Member, LLC (Managing Member)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. §1350,
AS ADOPTED PURSUANT TO
§906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of ATEL 16, LLC (the “Company”) on Form 10-Q for the period ended September 30, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Dean L. Cash, Chairman of the Board, President and Chief Executive Officer of ATEL Managing Member, LLC, Managing Member of the Company, hereby certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 13, 2014

/s/ Dean L. Cash

Dean L. Cash
Chairman of the Board, President and Chief
Executive Officer of ATEL Managing
Member, LLC (Managing Member)

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. §1350,
AS ADOPTED PURSUANT TO
§906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of ATEL 16, LLC (the “Company”) on Form 10-Q for the period ended September 30, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Paritosh K. Choksi, Director, Executive Vice President and Chief Financial Officer and Chief Operating Officer of ATEL Managing Member, LLC, Managing Member of the Company, hereby certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 13, 2014

/s/ Paritosh K. Choksi

Paritosh K. Choksi
Director, Executive Vice President and Chief Financial
Officer and Chief Operating Officer of ATEL Managing
Member, LLC (Managing Member)

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

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Commitments (Narrative) (Details) (USD $)	9 Months Ended
	Sep. 30, 2014
Commitments [Abstract]
Commitments to purchase lease assets	$ 2,919,025
Commitments to fund investments in notes receivable	$ 2,162,978

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Investments in Equipment and Leases, Net (Future Minimum Lease Payments Receivable) (Details) (USD $)	Sep. 30, 2014
Operating Leases
Three months ending December 31, 2014	$ 128,665
Year ending December 31, 2015	1,602,816
2016	514,662
2017	196,243
2018	39,511
2019	28,079
Thereafter	7,044
Operating leases, total	$ 2,517,020

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Organization and Limited Liability Company Matters (Narrative) (Details) (USD $)	9 Months Ended				9 Months Ended
	Sep. 30, 2014	Jul. 19, 2014	Mar. 06, 2014	Dec. 31, 2012	Sep. 30, 2014 Minimum [Member]	Sep. 30, 2014 Maximum [Member]	Oct. 31, 2014 Subsequent Event [Member]
Initial Member's capital investment				$ 500
Initial offering period description	November 5, 2013
Initial offering period	2 years
Limited liability company, minimum required proceeds from initial offering	150,000,000
Amount of aggregate subscriptions					7,500,000
Contributions received, total		7,500,000
Sale of Limited Liability Company Units, number of units			120,000
Proceeds from sale of Limited Liability Company Units			1,200,000
Gross contributions	12,739,140						14,678,900
AFS' capital investment	$ 500						$ 500
Units issued	1,273,914
Units outstanding	799,217
Percentage of distributions on Original Invested Capital					7.00%	9.00%
Reinvestment period	6 years

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Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Financial assets:
Cash and cash equivalents	$ 3,851,932	$ 500
Notes receivable, net	409,624
Level 1 Estimated Fair Value [Member]
Financial assets:
Cash and cash equivalents	3,851,932	500
Level 2 Estimated Fair Value [Member]
Financial assets:
Cash and cash equivalents
Notes receivable, net
Level 3 Estimated Fair Value [Member]
Financial assets:
Notes receivable, net	409,624
Carrying Amount [Member]
Financial assets:
Cash and cash equivalents	3,851,932	500
Notes receivable, net	$ 409,624

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Syndication Costs (Narrative) (Details) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014
Syndication costs	$ 708,598	$ 1,907,469
Maximum [Member]
Selling commission rate, maximum		15.00%

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2014

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2.  Summary of significant accounting policies:

Basis of presentation:

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q as mandated by the Securities and Exchange Commission. The unaudited interim financial statements reflect all adjustments which are, in the opinion of the Managing Member, necessary for a fair statement of financial position and results of operations for the interim periods presented. All such adjustments are of a normal recurring nature. Operating results for the three and nine months ended September 30, 2014 are not necessarily indicative of the results to be expected for the full year. Certain prior period amounts may have been reclassified to conform to the current period presentation. These reclassifications had no significant effect on the reported financial position or results of operations.

In preparing the accompanying financial statements, the Company has reviewed, as determined necessary by the Managing Member, events that have occurred after September 30, 2014, up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements.

Cash:

Cash is maintained in a non-interest bearing checking account.

Use of Estimates:

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates. Such estimates primarily relate to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes and determination of the allowance for doubtful accounts and reserve for credit losses on notes receivable.  

Accounts receivable:

Accounts receivable represent the amounts billed under operating lease contracts and notes receivable which are due to the Company. Allowances for doubtful accounts, if any, are typically established based on historical charge off and collection experience and the collectability of specifically identified lessees and invoiced amounts. Accounts receivable deemed uncollectible are charged off to the allowance on a specific identification basis. Amounts recovered that were previously written-off are recorded as other income in the period received.

Credit risk:

Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents, operating and direct financing lease receivables, notes receivable and accounts receivable. The Company places the majority of its cash deposits in noninterest-bearing accounts with financial institutions that have no less than $10 billion in assets. Such deposits are insured up to $250 thousand. The remainder of the Fund’s cash is temporarily invested in U.S. Treasury denominated instruments. The concentration of such deposits and temporary cash investments is not deemed to create a significant risk to the Company. Accounts and notes receivable represent amounts due from lessees or borrowers in various industries, related to equipment on operating and direct financing leases or notes receivable.

Equipment on operating leases and related revenue recognition:

Equipment subject to operating leases is stated at cost. Depreciation is being recognized on a straight-line method over the terms of the related leases to the equipment’s estimated residual values. Off-lease equipment is generally not subject to depreciation. The Company depreciates all lease assets, in accordance with guidelines consistent with ASC 840-20-35-3, over the periods of the lease terms contained in each asset’s respective lease contract to the estimated residual value at the end of the lease contract. All lease assets are purchased only concurrent with the execution of a lease commitment by the lessee. Thus, the original depreciation period corresponds with the term of the original lease. Once the term of an original lease contract is completed, the subject property is typically sold to the existing user, re-leased to the existing user, or, when off-lease, is held for sale. Assets which are re-leased continue to be depreciated using the terms of the new lease agreements and the estimated residual values at the end of the new lease terms, adjusted downward as necessary. Assets classified as held-for-sale are carried at the lower of carrying amount, or the fair value less cost to sell (ASC 360-10-35-43).

The Company does not use the equipment held in its portfolio, but holds it solely for lease and ultimate sale. In the course of marketing equipment that has come off-lease, management may determine at some point that re-leasing the assets may provide a superior return for investors and would then execute another lease. Upon entering into a new lease contract, management will estimate the residual value once again and resume depreciation. If, and when, the Company, at any time, determines that depreciation in value may have occurred with respect to an asset held-for-sale, the Company would review the value to determine whether a material reduction in value had occurred and recognize any appropriate impairment. All lease assets, including off-lease assets, are subject to the Company’s quarterly impairment analysis, as described in Note 4. Maintenance costs associated with the Fund’s portfolio of leased assets are expensed as incurred. Major additions and betterments are capitalized.

Operating lease revenue is recognized on a straight-line basis over the term of the underlying leases. The initial lease terms will vary as to the type of equipment subject to the leases, the needs of the lessees and the terms to be negotiated, but initial leases are generally on terms from 36 to 120 months. The difference between rent received and rental revenue recognized is recorded as unearned operating lease income on the balance sheet.

Operating leases are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management considers the equipment underlying the lease contracts for impairment and periodically reviews the credit worthiness of all operating lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related operating leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, revenues are recognized on a cash basis.

Notes receivable, unearned interest income and related revenue recognition:

The Company records all future payments of principal and interest on notes as notes receivable, which are then offset by the amount of any related unearned interest income. For financial statement purposes, the Company reports only the net amount of principal due on the balance sheet. The unearned interest is recognized over the term of the note and the income portion of each note payment is calculated so as to generate a constant rate of return on the net balance outstanding. Any fees or costs related to notes receivable are recorded as part of the net investment in notes receivable and amortized over the term of the loan.

Allowances for losses on notes receivable are typically established based on historical charge off and collection experience and the collectability of specifically identified borrowers and billed and unbilled receivables. Notes are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest when due according to the contractual terms of the note agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. If it is determined that a loan is impaired with regard to scheduled payments, the Company will perform an analysis of the note to determine if an impairment valuation reserve is necessary. This analysis considers the estimated cash flows from the note, or the collateral value of the property underlying the note when note repayment is collateral dependent. Any required valuation reserve is charged to earnings when determined; and notes are charged off to the allowance as they are deemed uncollectible.

Notes receivable are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management periodically reviews the creditworthiness of companies with note payments outstanding less than 90 days. Based upon management’s judgment, the related notes may be placed on non-accrual status. Notes placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid receivable is probable. Until such time, all payments received are applied only against outstanding principal balances.

Initial direct costs:

The Company capitalizes initial direct costs (“IDC”) associated with the origination and funding of lease assets and investments in notes receivable. IDC includes both internal costs (e.g., the costs of employees’ activities in connection with successful lease and loan originations) and external broker fees incurred with such originations. The costs are amortized on a lease by lease (or note by note) basis based on actual contract term using a straight-line method for operating leases and the effective interest rate method for direct financing leases and notes receivable. Upon disposal of the underlying lease and loan assets, both the initial direct costs and the associated accumulated amortization are relieved. Costs related to leases or notes receivable that are not consummated are not eligible for capitalization as initial direct costs and are expensed as acquisition expense.

Acquisition expense:

Acquisition expense represents costs which include, but are not limited to, legal fees and expenses, travel and communication expenses, cost of appraisals, accounting fees and expenses and miscellaneous expenses related to the selection and acquisition of equipment which are reimbursable to the Managing Member under the terms of the Operating Agreement. As the costs are not eligible for capitalization as initial direct costs, such amounts are expensed as incurred.

Asset valuation:

Recorded values of the Company’s leased asset portfolio are periodically reviewed for impairment. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the estimated residual value of the asset at the end of the asset’s expected holding period and estimates of undiscounted future rents. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the market place are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date.

Segment reporting:

The Company is organized into one operating segment for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment in the United States.

The Company’s principal decision makers are the Managing Member’s Chief Executive Officer and its Chief Financial Officer and Chief Operating Officer. The Company believes that its financing business operates as one reportable segment because: a) the Company measures profit and loss at the portfolio assets level as a whole; b) the principal decision makers do not review information based on any operating segment other than the equipment financing transaction portfolio; c) the Company does not maintain discrete financial information on any specific segment other than its equipment financing operations; d) the Company has not chosen to organize its business around different products and services other than equipment financing; and e) the Company has not chosen to organize its business around geographic areas.

The primary geographic region in which the Company seeks financing opportunities is North America. Currently, 100% of the Company’s operating revenues and long-lived assets relate to customers domiciled in North America.

Unearned operating lease income:

The Company records prepayments on operating leases as a liability under the caption of unearned operating lease income. The liability is recorded when prepayments are received and recognized as operating lease revenue over the period to which the prepayments relate using a straight-line method.

Per Unit data:

Net loss and distributions declared per Unit for the third quarter of 2014 is based upon the weighted average number of Other Members Units outstanding during the period. The net loss and distributions declared per Unit for the first nine months of 2014 is based upon the weighted average number of Other Members Units from March 6, 2014 (Release Date of Escrow) through September 30, 2014.

Recent accounting pronouncements:

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company evaluated the impact of the new standard on its financial statements and has determined that such impact is virtually non-existent as the new revenue guideline does not affect revenues from leases and loans, which comprise the majority of the Company’s revenues.

In August 2014, the FASB issued Accounting Standards Update 2014-15, Presentation of Financial Statements – Going Concern (subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The new standard provides guidance relative to management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. Management is currently evaluating the standard and its operational and related disclosure requirements.

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Notes Receivable, Net (Initial Direct Costs, Amortization Expense Related to Notes Receivable and Company's Operating and Direct Finance Leases) (Details) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amortization of initial direct costs	$ 7,643	$ 12,086
Notes Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amortization of initial direct costs	333	531
Lease Assets [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amortization of initial direct costs	$ 7,310	$ 11,555

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Notes Receivable, Net (Minimum Future Payments Receivable) (Details) (USD $)	Sep. 30, 2014
Notes Receivable, Net [Abstract]
Three months ending December 31, 2014	$ 49,119
Year ending December 31, 2015	196,478
2016	185,768
2017	53,210
Financing receivable, gross	484,575
Less: portion representing unearned interest income	(76,608)
Notes receivable	407,967
Unamortized initial direct costs	1,657
Notes receivable, net	$ 409,624

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Investments in Equipment and Leases, Net (Narrative) (Details) (USD $)	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2014	Dec. 31, 2013
Leases Disclosure [Line Items]
Impairment losses		$ 0	$ 0
Amortization of initial direct costs	7,643	12,086
Depreciation of operating lease assets	284,300	370,933
Average estimated residual value of assets on operating leases	63.00%	63.00%
Lease Assets [Member]
Leases Disclosure [Line Items]
Amortization of initial direct costs	$ 7,310	$ 11,555

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Investments in Equipment and Leases, Net (Investment in Leases) (Details) (USD $)	9 Months Ended
	Sep. 30, 2014
Leases Disclosure [Line Items]
Balance December 31, 2013
Reclassifications & Additions/Dispositions	7,132,770
Depreciation/ Amortization Expense or Amortization of Leases	(382,488)
Balance September 30, 2014	6,750,282
Initial direct costs, accumulated amortization	11,555
Operating Leases [Member]
Leases Disclosure [Line Items]
Balance December 31, 2013
Reclassifications & Additions/Dispositions	7,021,096
Depreciation/ Amortization Expense or Amortization of Leases	(370,933)
Balance September 30, 2014	6,650,163
Initial Direct Cost [Member]
Leases Disclosure [Line Items]
Balance December 31, 2013
Reclassifications & Additions/Dispositions	111,674
Depreciation/ Amortization Expense or Amortization of Leases	(11,555)
Balance September 30, 2014	$ 100,119

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Organization and Limited Liability Company Matters

9 Months Ended

Sep. 30, 2014

Organization and Limited Liability Company Matters [Abstract]

Organization and Limited Liability Company Matters

1.  Organization and Limited Liability Company matters:

ATEL 16, LLC (the “Company” or the “Fund”) was formed under the laws of the state of California on December 27, 2012 for the purpose of raising capital and originating equipment financing transactions and acquiring equipment to engage in equipment leasing and sales activities.  The Managing Member of the Company is ATEL Managing Member, LLC (the “Managing Member” or the “Manager”), a Nevada limited liability company.The Managing Member is controlled by ATEL Financial Services, LLC (“AFS”), a wholly-owned subsidiary of ATEL Capital Group (“ACG” or “ATEL”).  The Fund may continue until terminated as provided in the ATEL 16, LLC limited liability company operating agreement dated November 1, 2013 (the “Operating Agreement”). Contributions in the amount of $500 were received as of December 31, 2012, which represented the initial member’s capital investment. As a limited liability company, the liability of any individual member for the obligations of the Fund is limited to the extent of capital contributions to the Fund by the individual member.

The offering of the Company was granted effectiveness by the Securities and Exchange Commission as of November 5, 2013. The offering will continue until the earlier of a period of two years from that date or until sales of the limited liability company units (Units) to the public reach $150,000,000.  As of March 6, 2014, subscriptions for the minimum number of Units (120,000, representing $1,200,000), excluding subscriptions from Pennsylvania investors, had been received and the Fund requested subscription proceeds to be released from escrow. On that date, the Company commenced initial operations and continued in its development stage activities until transitioning to an operating enterprise during the second quarter of 2014. Pennsylvania subscriptions are subject to a separate escrow and are released to the Fund only at such time as total subscription proceeds received by the Fund from all subscribers, including the escrowed Pennsylvania subscriptions, equal not less than $7,500,000 in gross proceeds.  Total contributions to the Fund exceeded $7,500,000 on June 19, 2014.

As of September 30, 2014, cumulative contributions totaling $12,739,140 have been received, inclusive of the $500 initial member’s capital investment. As of such date, a total of 1,273,914 Units were issued and outstanding. The Fund is actively raising capital and, as of October 31, 2014, has received cumulative contributions in the amount of $14,678,900, inclusive of the $500 initial member’s capital investment.

The Fund, or Managing Member on behalf of the Fund, has and will continue to incur costs in connection with the organization, registration and issuance of the Units. The amount of such costs to be borne by the Fund is limited by certain provisions of the Operating Agreement.

The Company’s principal objectives are to invest in a diversified portfolio of investments that will (i) preserve, protect and return the Company’s invested capital; (ii) generate regular cash distributions to Unitholders during the Offering Stage and Operating Stages of the Fund, any balance remaining after required minimum distributions, equal to not less than 7% nor more than 9% per annum on investors’ Original Invested Capital, during the Operating Stage, to be used to purchase additional investments during the Reinvestment Period (the first six years after the year the offering terminates); and (iii) provide additional cash distributions during the Liquidating Stage, commencing with the end of the Operating Stage/Reinvestment Period and continuing until all investment portfolio assets have been sold or otherwise disposed. The Company is governed by the Operating Agreement.

These unaudited interim financial statements should be read in conjunction with the financial statements and notes thereto contained in the report on Form 10-K for the year ended December 31, 2013, filed with the Securities and Exchange Commission.

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Investments in Equipment and Leases, Net (Property on Operating Leases) (Details) (USD $)	9 Months Ended
	Sep. 30, 2014
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2013
Additions	6,650,163
Reclassifications or Dispositions
Balance September 30, 2014	6,650,163
Coal Terminal [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2013
Additions	5,000,000
Reclassifications or Dispositions
Balance September 30, 2014	5,000,000
Materials Handling [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2013
Additions	1,751,997
Reclassifications or Dispositions
Balance September 30, 2014	1,751,997
Aircraft Ground Support [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2013
Additions	181,599
Reclassifications or Dispositions
Balance September 30, 2014	181,599
Transportation [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2013
Additions	87,500
Reclassifications or Dispositions
Balance September 30, 2014	87,500
Total Property Subject To Or Available For Operating Lease
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2013
Additions	7,021,096
Reclassifications or Dispositions
Balance September 30, 2014	7,021,096
Less Accumulated Depreciation [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2013
Additions	(370,933)
Reclassifications or Dispositions
Balance September 30, 2014	$ (370,933)

XML

Member's Capital (Narrative) (Details)	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Other Members Capital Account [Line Items]
Members capital unit issued	1,273,914	50
Members capital, units outstanding	799,217	50
Other Members capital account, units authorized	15,000,000	15,000,000
Potential repurchase price of units as percentage of holder's capital account	100.00%
Allocation of net income of net losses	100.00%
Other Members [Member]
Other Members Capital Account [Line Items]
Allocation of net income or net losses from commencement until initial closing date	1.00%
Allocation of net income or net losses commencing with initial closing date	99.99%
Percentage of fund distributions, other members	99.99%
Managing Member [Member]
Other Members Capital Account [Line Items]
Members capital, units outstanding	50	50
Allocation of net income or net losses from commencement until initial closing date	99.00%
Allocation of net income or net losses commencing with initial closing date	0.01%
Percentage of fund distributions, managing members	0.01%

XML

Balance Sheets (USD $)	Sep. 30, 2014	Dec. 31, 2013
ASSETS
Cash and cash equivalents	$ 3,851,932	$ 500
Accounts receivable, net	12,124
Notes receivable, net of unearned interest income of $76,608 as of September 30, 2014	409,624
Investments in equipment and leases, net of accumulated depreciation of $370,933 at September 30, 2014	6,750,282
Prepaid expenses and other assets	38,602
Total assets	11,062,564	500
Accounts payable and accrued liabilities:
Managing Member	5,733
Affiliates	210,752
Accrued distributions to Other Members	76,813
Other	25,100
Unearned operating lease income	378,398
Total liabilities	696,796
Commitments and contingencies
Members' capital:
Managing Member		500
Other Members	10,365,768
Total Members' capital	10,365,768	500
Total liabilities and Members' capital	$ 11,062,564	$ 500

XML

Statements of Changes in Members' Capital (Parenthetical) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014
Statements of Changes in Member's Capital [Abstract]
Weighted average distributions per Unit	$ 0.18	$ 0.40

XML

Related Party Transactions (Narrative) (Details)	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014
ATEL Securities Corporation (''ASC'') [Member]
Related Party Transaction [Line Items]
Selling commission rate, maximum	9.00%	9.00%
Selling commission rate, net		2.00%
Broker-Dealer [Member]
Related Party Transaction [Line Items]
Selling commission rate, maximum		7.00%

XML

Related Party Transactions (Tables)

9 Months Ended

Sep. 30, 2014

Related Party Transactions [Abstract]

Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement

During the three and nine months ended September 30, 2014, the Managing Member and/or affiliates earned commissions and fees, and billed for reimbursements pursuant to the Operating Agreement as follows:

		Three Months Ended September 30, 2014		Nine Months Ended September 30, 2014
Selling commissions, equal to 9% of the selling price of the Limited Liability Company Units, deducted from Other Members capital	$	425,127	$	1,144,467
Reimbursement of other syndication costs to Managing Member    and/or affiliates, deducted from Other Members capital		283,471		763,002
Administrative costs reimbursed to Managing Member and/or affiliates		44,129		46,727
Asset management fees to Managing Member		21,264		34,779
Acquisition and initial direct costs paid to Managing Member		3,540		134,790
	$	777,531	$	2,123,765

XML

Related Party Transactions (Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement) (Details) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014
Related Party Transaction [Line Items]
Selling commissions, equal to 9% of the selling price of the Limited Liability Company Units, deducted from Other Members capital	$ 425,127	$ 1,144,467
Reimbursement of other syndication costs to Managing Member and/or affiliates, deducted from Other Members capital	283,471	763,002
Administrative costs reimbursed to Managing Member and/or affiliates	44,129	46,727
Asset management fees to Managing Member	21,264	34,779
Acquisition and initial direct costs paid to Managing Member	3,540	134,790
Related party transaction, total	$ 777,531	$ 2,123,765
ATEL Securities Corporation (''ASC'') [Member]
Related Party Transaction [Line Items]
Selling commission rate, maximum	9.00%	9.00%

XML

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value Measurements [Abstract]

Estimated Fair Values of Financial Instruments

The following tables present estimated fair values of the Company’s financial instruments in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification at September 30, 2014 and December 31, 2013:

		September 30, 2014
		Carrying Amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	3,851,932	$	3,851,932	$	-	$	-	$	3,851,932
Notes receivable, net		409,624		-		-		409,624		409,624
		December 31, 2013
		Carrying Amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	500	$	500	$	-	$	-	$	500

XML

Statements of Cash Flows (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014
Operating activities:
Net loss	$ (36,847)	$ (177,986)
Adjustment to reconcile net loss to cash (used in) provided by operating activities:
Depreciation of operating lease assets	284,300	370,933
Amortization of initial direct costs	7,643	12,086
Changes in operating assets and liabilities:
Accounts receivable	7,610	(12,124)
Prepaid expenses and other assets	14,494	(38,602)
Accounts payable, Managing Member	1,647	5,725
Accounts payable, other	17,445	25,091
Accrued liabilities, affiliates	(906,659)	210,752
Unearned operating lease income	368,960	378,398
Net cash (used in) provided by operating activities	(241,407)	774,273
Investing activities:
Purchases of equipment on operating leases	(408,783)	(7,021,096)
Payments of initial direct costs	(54,530)	(113,862)
Note receivable advances		(480,207)
Principal payments received on notes receivable	33,919	72,240
Net cash used in investing activities	(429,394)	(7,542,925)
Financing activities:
Selling commissions to affiliates	(427,227)	(1,144,458)
Syndication costs paid to Managing Member and affiliates	(284,818)	(763,002)
Capital contributions	4,746,970	12,738,640
Net cash provided by financing activities	3,886,387	10,620,084
Net increase in cash and cash equivalents	3,215,586	3,851,432
Cash at beginning of period		500
Cash at end of period	3,851,932	3,851,932
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	3,521	4,472
Cash paid during the period for taxes		1,600
Schedule of non-cash investing and financing transactions:
Syndication and organizational costs payable to affiliated company	9	9
Other Members [Member]
Financing activities:
Distributions to Members	(148,523)	(211,075)
Schedule of non-cash investing and financing transactions:
Distributions payable to Members at period-end	76,813	76,813
Managing Member [Member]
Financing activities:
Distributions to Members	(15)	(21)
Schedule of non-cash investing and financing transactions:
Distributions payable to Members at period-end	$ 8	$ 8

XML

Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2014
Balance Sheets [Abstract]
Notes receivable, unearned interest income	$ 76,608
Investments in equipment and leases, accumulated depreciation	$ 370,933

XML

Member's Capital

9 Months Ended

Sep. 30, 2014

Members Capital [Abstract]

Member's Capital

10.Members’ Capital:

A total of 1,273,914 and 50 Units were issued and outstanding as of September 30, 2014 and December 31, 2013, respectively, including the 50 Units issued to the initial Member (Managing Member). The Fund is authorized to issue up to 15,000,000 Units in addition to the Units issued to the initial Member.

The Company has the right, exercisable in the Manager’s discretion, but not the obligation, to repurchase Units of a Unitholder who ceases to be a U.S. Citizen, for a price equal to 100% of the holder’s capital account. The Company is otherwise permitted, but not required, to repurchase Units upon a holder’s request. The repurchase of Fund Units is made in accordance with Section 13 of the Amended and Restated Limited Liability Company Operating Agreement. The repurchase would be at the discretion of the Manager on terms it determines to be appropriate under given circumstances, in the event that the Manager deems such repurchase to be in the best interest of the Company; provided, the Company is never required to repurchase any Units. Upon the repurchase of any Units by the Fund, the tendered Units are cancelled. Units repurchased in prior periods were repurchased at amounts representing the original investment less cumulative distributions made to the Unitholder with respect to the Units. All Units repurchased during a quarter are deemed to be repurchased effective the last day of the preceding quarter, and are not deemed to be outstanding during, or entitled to allocations of net income, net loss or distributions for the quarter in which such repurchase occurs.

The Fund’s net income or net losses are to be allocated 100% to the Members. From the commencement of the Fund until the initial closing date net income and net loss shall be allocated 99% to the Managing Member and 1% to the initial other members. Commencing with the initial closing date, net income and net loss shall be allocated 99.99% to the Other Members and 0.01% to the Managing Member.

Fund distributions are to be allocated 0.01% to the Managing Member and 99.99% to the Other Members.The Company commenced periodic distributions, based on cash flows from operations, during the second quarter of 2014.

Distributions to the Other Members for the three and nine months ended September 30, 2014 were as follows:

		Three Months Ended September 30, 2014		Nine Months Ended September 30, 2014
Distributions	$	180,476	$	287,888
Weighted average number of Units outstanding		1,029,531		721,007
Weighted average distributions per Unit	$	0.18	$	0.40

XML

Document And Entity Information	9 Months Ended
	Sep. 30, 2014	Oct. 31, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3
Entity Registrant Name	ATEL 16, LLC
Entity Central Index Key	0001575048
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Units Outstanding		1,467,890

XML

Fair Value Measurements

9 Months Ended

Sep. 30, 2014

Fair Value Measurements [Abstract]

Fair Value Measurements

11.  Fair value measurements:

Fair value measurements and disclosures are based on a fair value hierarchy as determined by significant inputs used to measure fair value. The three levels of inputs within the fair value hierarchy are defined as follows:

Level 1 – Quoted prices in active markets for identical assets or liabilities. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuations in which all significant inputs are observable in the market.

Level 3 – Valuation is modeled using significant inputs that are unobservable in the market. These unobservable inputs reflect the Company's own estimates of assumptions that market participants would use in pricing the asset or liability.

At September 30, 2014 and December 31, 2013, the Company had no assets or liabilities that require measurement at fair value on a recurring or non-recurring basis.

The Company’s valuation policy is determined by members of the Asset Management, Credit and Accounting departments. Whenever possible, the policy is to obtain quoted market prices in active markets to estimate fair values for recognition and disclosure purposes. Where quoted market prices in active markets are not available, fair values are estimated using discounted cash flow analyses, broker quotes, information from third party remarketing agents, third party appraisals of collateral and/or other valuation techniques. These techniques are significantly affected by certain of the Company’s assumptions, including discount rates and estimates of future cash flows. Potential taxes and other transaction costs are not considered in estimating fair values. As the Company is responsible for determining fair value, an analysis is performed on prices obtained from third parties. Such analysis is performed by asset management and credit department personnel who are familiar with the Company’s investments in equipment, notes receivable and equity securities of venture companies. The analysis may include a periodic review of price fluctuations and validation of numbers obtained from a specific third party by reference to multiple representative sources. 

The following disclosure of the estimated fair value of financial instruments is made in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification. Fair value estimates, methods and assumptions, set forth below for the Company’s financial instruments, are made solely to comply with the requirements of the Financial Instruments Topic and should be read in conjunction with the Company’s financial statements and related notes.

The Company has determined the estimated fair value amounts by using market information and valuation methodologies that it considers appropriate and consistent with the fair value accounting guidance. Considerable judgment is required to interpret market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

Cash and cash equivalents

The recorded amounts of the Company’s cash and cash equivalents approximate fair value because of the liquidity and short-term maturity of these instruments.

Notes receivable

The fair value of the Company’s notes receivable is estimated using either third party appraisals of collateral or discounted cash flow analyses based upon current market rates for similar types of lending arrangements, with credit risk or estimated collateral liquidation adjustments for impaired loans as deemed necessary.

The following tables present estimated fair values of the Company’s financial instruments in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification at September 30, 2014 and December 31, 2013:

		September 30, 2014
		Carrying Amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	3,851,932	$	3,851,932	$	-	$	-	$	3,851,932
Notes receivable, net		409,624		-		-		409,624		409,624
		December 31, 2013
		Carrying Amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	500	$	500	$	-	$	-	$	500

XML

Statements of Operations (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014
Revenues:
Operating lease revenue	$ 327,188	$ 419,441
Notes receivable interest income	15,200	26,117
Interest income	17	34
Other	47	5,997
Total revenues	342,452	451,589
Expenses:
Depreciation of operating lease assets	284,300	370,933
Asset management fees to Managing Member	21,264	34,779
Acquisition expense	(50,990)	20,928
Cost reimbursements to affiliates	44,129	46,727
Amortization of initial direct costs	7,643	12,086
Interest expense	3,160	4,472
Professional fees	26,171	32,627
Outside services	22,898	75,279
Taxes on income and franchise fees	3,000	4,600
Bank charges	6,441	13,149
Other	11,283	13,995
Total expenses	379,299	629,575
Net loss	(36,847)	(177,986)
Net income (loss):
Managing Member	18	(471)
Other Members	(36,865)	(177,515)
Net loss	$ (36,847)	$ (177,986)
Net loss per Limited Liability Company Unit (Other Members)	$ (0.04)	$ (0.25)
Weighted average number of Units outstanding	1,029,531	721,007

XML

Related Party Transactions

9 Months Ended

Sep. 30, 2014

Related Party Transactions [Abstract]

Related Party Transactions

5.  Related Party Transactions:

The terms of the Operating Agreement provide that the Managing Member and/or affiliates are entitled to receive certain fees, for equipment acquisition and asset management services and to receive reimbursements for payments made on behalf of the Fund for certain operating expenses, which are more fully described in Section 8 of the Operating Agreement.

The Operating Agreement allows for the reimbursement of costs incurred by the Managing Member and/or affiliates for providing administrative services to the Company. Administrative services provided include Company accounting, investor relations, legal counsel and equipment financing documentation. The Managing Member is not reimbursed for services whereby it is entitled to receive a separate fee as compensation for such services, such as management of investments.

Cost reimbursements to the Managing Member or its affiliates are based on its costs incurred in performing administrative services for the Company. These costs are allocated to each managed entity based on certain criteria such as managed assets, number of investors or contributed capital based upon the type of cost incurred. The Managing Member believes that the costs reimbursed are the lower of (i) actual costs incurred on behalf of the Company or (ii) the amount the Company would be required to pay independent parties for comparable administrative services in the same geographic location.

Each of ATEL Leasing Corporation (“ALC”) and AFS is a wholly-owned subsidiary of ATEL Capital Group and performs services for the Company. Acquisition services, equipment management, lease administration and asset disposition services are performed by ALC; and investor relations, communications services and general administrative services are performed by AFS.

During its offering period, the Fund will pay selling commissions of up to 9% of the selling price of the Units to ATEL Securities Corporation (‘‘ASC’’), an affiliate of the Managing Member acting as Dealer Manager for the group of selling broker-dealers. ASC will in turn pay to participating broker-dealers selling commissions of up to 7% of the price of the Units sold by them, retaining the balance of 2%.

During the three and nine months ended September 30, 2014, the Managing Member and/or affiliates earned commissions and fees, and billed for reimbursements pursuant to the Operating Agreement as follows:

		Three Months Ended September 30, 2014		Nine Months Ended September 30, 2014
Selling commissions, equal to 9% of the selling price of the Limited Liability Company Units, deducted from Other Members capital	$	425,127	$	1,144,467
Reimbursement of other syndication costs to Managing Member    and/or affiliates, deducted from Other Members capital		283,471		763,002
Administrative costs reimbursed to Managing Member and/or affiliates		44,129		46,727
Asset management fees to Managing Member		21,264		34,779
Acquisition and initial direct costs paid to Managing Member		3,540		134,790
	$	777,531	$	2,123,765

XML

Investment in Equipment and Leases, Net

9 Months Ended

Sep. 30, 2014

Investment in Equipment and Leases, Net [Abstract]

Investment in Equipment and Leases, Net

4.  Investment in equipment and leases, net:

The Company’s investment in leases consists of the following:

		Balance December 31, 2013		Reclassifications & Additions / Dispositions		Depreciation/ Amortization Expense or Amortization of Leases		Balance September 30, 2014
Net investment in operating leases	$	-	$	7,021,096	$	(370,933)	$	6,650,163
Initial direct costs, net of accumulated   amortization of $11,555 at September 30, 2014		-		111,674		(11,555)		100,119
Total	$	-	$	7,132,770	$	(382,488)	$	6,750,282

Additions to net investment in operating lease assets are stated at cost. All of the Company’s leased property was acquired beginning in March 2014 through August 2014.

Impairment of investments in leases:

Recorded values of the Company’s leased asset portfolio are reviewed each quarter to confirm the reasonableness of established residual values and to determine whether there is indication that an asset impairment might have taken place. The Company uses a variety of sources and considers many factors in evaluating whether the respective book values of its assets are appropriate. In addition, the company may direct a residual value review at any time if it becomes aware of issues regarding the ability of a lessee to continue to make payments on its lease contract. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the residual value of the asset at the end of the asset’s lease contract and undiscounted future rents from the existing lease contract. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or

comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. Upward adjustments for impairments recognized in prior periods are not made in any circumstances.

As a result of these reviews, management determined that no impairment losses existed during the respective three and nine months ended September 30, 2014.

The Company utilizes a straight-line depreciation method for equipment in all of the categories currently in its portfolio of lease transactions. Depreciation expense on the Company’s equipment totaled $284,300 and $370,933 for the respective three and nine months ended September 30, 2014. IDC amortization expense related to the Company’s operating leases totaled $7,310and $11,555 for the same respective periods.

Operating leases:

Property on operating leases consists of the following:

		Balance December 31, 2013		Additions		Reclassifications or Dispositions		Balance September 30, 2014
Coal terminal	$	-	$	5,000,000	$	-	$	5,000,000
Materials handling		-		1,751,997		-		1,751,997
Aircraft ground support		-		181,599		-		181,599
Transportation		-		87,500		-		87,500
		-		7,021,096		-		7,021,096
Less accumulated depreciation		-		(370,933)		-		(370,933)
Total	$	-	$	6,650,163	$	-	$	6,650,163

The average estimated residual value for assets on operating leases was 63% of the assets’ original cost at September 30, 2014.  There were no operating leases in non-accrual status as of September 30, 2014.

At September 30, 2014, the aggregate amounts of future minimum lease payments receivable are as follows:

		Operating Leases
Three months ending December 31, 2014	$	128,665
Year ending December 31, 2015		1,602,816
2016		514,662
2017		196,243
2018		39,511
2019		28,079
Thereafter		7,044
	$	2,517,020

The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of September 30, 2014, the respective useful lives of each category of lease assets in the Company’s portfolio are as follows (in years):

Equipment category	Useful Life
Coal terminal	50 - 60
Aircraft ground support	15 - 20
Transportation	7 - 10
Materials handling	7 - 10

XML

Members' Capital (Tables)

9 Months Ended

Sep. 30, 2014

Members Capital [Abstract]

Distributions to Other Members

Distributions to the Other Members for the three and nine months ended September 30, 2014 were as follows:

		Three Months Ended September 30, 2014		Nine Months Ended September 30, 2014
Distributions	$	180,476	$	287,888
Weighted average number of Units outstanding		1,029,531		721,007
Weighted average distributions per Unit	$	0.18	$	0.40

XML

Summary of Significant Accounting Policies (Policy)

9 Months Ended

Sep. 30, 2014

Summary of Significant Accounting Policies [Abstract]

Basis of Presentation

Basis of presentation:

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q as mandated by the Securities and Exchange Commission. The unaudited interim financial statements reflect all adjustments which are, in the opinion of the Managing Member, necessary for a fair statement of financial position and results of operations for the interim periods presented. All such adjustments are of a normal recurring nature. Operating results for the three and nine months ended September 30, 2014 are not necessarily indicative of the results to be expected for the full year. Certain prior period amounts may have been reclassified to conform to the current period presentation. These reclassifications had no significant effect on the reported financial position or results of operations.

In preparing the accompanying financial statements, the Company has reviewed, as determined necessary by the Managing Member, events that have occurred after September 30, 2014, up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements.

Cash

Cash:

Cash is maintained in a non-interest bearing checking account.

Use of Estimates

Use of Estimates:

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates. Such estimates primarily relate to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes and determination of the allowance for doubtful accounts and reserve for credit losses on notes receivable.  

Accounts Receivable

Accounts receivable:

Accounts receivable represent the amounts billed under operating lease contracts and notes receivable which are due to the Company. Allowances for doubtful accounts, if any, are typically established based on historical charge off and collection experience and the collectability of specifically identified lessees and invoiced amounts. Accounts receivable deemed uncollectible are charged off to the allowance on a specific identification basis. Amounts recovered that were previously written-off are recorded as other income in the period received.

Credit Risk

Credit risk:

Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents, operating and direct financing lease receivables, notes receivable and accounts receivable. The Company places the majority of its cash deposits in noninterest-bearing accounts with financial institutions that have no less than $10 billion in assets. Such deposits are insured up to $250 thousand. The remainder of the Fund’s cash is temporarily invested in U.S. Treasury denominated instruments. The concentration of such deposits and temporary cash investments is not deemed to create a significant risk to the Company. Accounts and notes receivable represent amounts due from lessees or borrowers in various industries, related to equipment on operating and direct financing leases or notes receivable.

Equipment on Operating Leases and Related Revenue Recognition

Equipment on operating leases and related revenue recognition:

Equipment subject to operating leases is stated at cost. Depreciation is being recognized on a straight-line method over the terms of the related leases to the equipment’s estimated residual values. Off-lease equipment is generally not subject to depreciation. The Company depreciates all lease assets, in accordance with guidelines consistent with ASC 840-20-35-3, over the periods of the lease terms contained in each asset’s respective lease contract to the estimated residual value at the end of the lease contract. All lease assets are purchased only concurrent with the execution of a lease commitment by the lessee. Thus, the original depreciation period corresponds with the term of the original lease. Once the term of an original lease contract is completed, the subject property is typically sold to the existing user, re-leased to the existing user, or, when off-lease, is held for sale. Assets which are re-leased continue to be depreciated using the terms of the new lease agreements and the estimated residual values at the end of the new lease terms, adjusted downward as necessary. Assets classified as held-for-sale are carried at the lower of carrying amount, or the fair value less cost to sell (ASC 360-10-35-43).

The Company does not use the equipment held in its portfolio, but holds it solely for lease and ultimate sale. In the course of marketing equipment that has come off-lease, management may determine at some point that re-leasing the assets may provide a superior return for investors and would then execute another lease. Upon entering into a new lease contract, management will estimate the residual value once again and resume depreciation. If, and when, the Company, at any time, determines that depreciation in value may have occurred with respect to an asset held-for-sale, the Company would review the value to determine whether a material reduction in value had occurred and recognize any appropriate impairment. All lease assets, including off-lease assets, are subject to the Company’s quarterly impairment analysis, as described in Note 4. Maintenance costs associated with the Fund’s portfolio of leased assets are expensed as incurred. Major additions and betterments are capitalized.

Operating lease revenue is recognized on a straight-line basis over the term of the underlying leases. The initial lease terms will vary as to the type of equipment subject to the leases, the needs of the lessees and the terms to be negotiated, but initial leases are generally on terms from 36 to 120 months. The difference between rent received and rental revenue recognized is recorded as unearned operating lease income on the balance sheet.

Operating leases are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management considers the equipment underlying the lease contracts for impairment and periodically reviews the credit worthiness of all operating lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related operating leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, revenues are recognized on a cash basis.

Notes Receivable, Unearned Interest Income and Related Revenue Recognition

Notes receivable, unearned interest income and related revenue recognition:

The Company records all future payments of principal and interest on notes as notes receivable, which are then offset by the amount of any related unearned interest income. For financial statement purposes, the Company reports only the net amount of principal due on the balance sheet. The unearned interest is recognized over the term of the note and the income portion of each note payment is calculated so as to generate a constant rate of return on the net balance outstanding. Any fees or costs related to notes receivable are recorded as part of the net investment in notes receivable and amortized over the term of the loan.

Allowances for losses on notes receivable are typically established based on historical charge off and collection experience and the collectability of specifically identified borrowers and billed and unbilled receivables. Notes are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest when due according to the contractual terms of the note agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. If it is determined that a loan is impaired with regard to scheduled payments, the Company will perform an analysis of the note to determine if an impairment valuation reserve is necessary. This analysis considers the estimated cash flows from the note, or the collateral value of the property underlying the note when note repayment is collateral dependent. Any required valuation reserve is charged to earnings when determined; and notes are charged off to the allowance as they are deemed uncollectible.

Notes receivable are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management periodically reviews the creditworthiness of companies with note payments outstanding less than 90 days. Based upon management’s judgment, the related notes may be placed on non-accrual status. Notes placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid receivable is probable. Until such time, all payments received are applied only against outstanding principal balances.

Initial Direct Costs

Initial direct costs:

The Company capitalizes initial direct costs (“IDC”) associated with the origination and funding of lease assets and investments in notes receivable. IDC includes both internal costs (e.g., the costs of employees’ activities in connection with successful lease and loan originations) and external broker fees incurred with such originations. The costs are amortized on a lease by lease (or note by note) basis based on actual contract term using a straight-line method for operating leases and the effective interest rate method for direct financing leases and notes receivable. Upon disposal of the underlying lease and loan assets, both the initial direct costs and the associated accumulated amortization are relieved. Costs related to leases or notes receivable that are not consummated are not eligible for capitalization as initial direct costs and are expensed as acquisition expense.

Acquisition Expense

Acquisition expense:

Acquisition expense represents costs which include, but are not limited to, legal fees and expenses, travel and communication expenses, cost of appraisals, accounting fees and expenses and miscellaneous expenses related to the selection and acquisition of equipment which are reimbursable to the Managing Member under the terms of the Operating Agreement. As the costs are not eligible for capitalization as initial direct costs, such amounts are expensed as incurred.

Asset Valuation

Asset valuation:

Recorded values of the Company’s leased asset portfolio are periodically reviewed for impairment. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the estimated residual value of the asset at the end of the asset’s expected holding period and estimates of undiscounted future rents. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the market place are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date.

Segment Reporting

Segment reporting:

The Company is organized into one operating segment for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment in the United States.

The Company’s principal decision makers are the Managing Member’s Chief Executive Officer and its Chief Financial Officer and Chief Operating Officer. The Company believes that its financing business operates as one reportable segment because: a) the Company measures profit and loss at the portfolio assets level as a whole; b) the principal decision makers do not review information based on any operating segment other than the equipment financing transaction portfolio; c) the Company does not maintain discrete financial information on any specific segment other than its equipment financing operations; d) the Company has not chosen to organize its business around different products and services other than equipment financing; and e) the Company has not chosen to organize its business around geographic areas.

The primary geographic region in which the Company seeks financing opportunities is North America. Currently, 100% of the Company’s operating revenues and long-lived assets relate to customers domiciled in North America.

Unearned Operating Lease Income

Unearned operating lease income:

The Company records prepayments on operating leases as a liability under the caption of unearned operating lease income. The liability is recorded when prepayments are received and recognized as operating lease revenue over the period to which the prepayments relate using a straight-line method.

Per Unit Data

Per Unit data:

Net loss and distributions declared per Unit for the third quarter of 2014 is based upon the weighted average number of Other Members Units outstanding during the period. The net loss and distributions declared per Unit for the first nine months of 2014 is based upon the weighted average number of Other Members Units from March 6, 2014 (Release Date of Escrow) through September 30, 2014.

Recent Accounting Pronouncements

Recent accounting pronouncements:

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company evaluated the impact of the new standard on its financial statements and has determined that such impact is virtually non-existent as the new revenue guideline does not affect revenues from leases and loans, which comprise the majority of the Company’s revenues.

In August 2014, the FASB issued Accounting Standards Update 2014-15, Presentation of Financial Statements – Going Concern (subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The new standard provides guidance relative to management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. Management is currently evaluating the standard and its operational and related disclosure requirements.

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Commitments

9 Months Ended

Sep. 30, 2014

Commitments [Abstract]

Commitments

8.  Commitments:

At September 30, 2014, there were commitments to purchase lease assets and fund investments in notes receivable totaling approximately $2,919,025 and $2,162,978respectively.  These amounts represent contract awards which may be canceled by the prospective borrower/lessee or may not be accepted by the Company.

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Syndication Costs

9 Months Ended

Sep. 30, 2014

Syndication Costs [Abstract]

Syndication Costs

6.  Syndication Costs:

Syndication costs are reflected as a reduction to Members’ capital as such costs are netted against the capital raised. The amount shown is primarily comprised of selling commissions as well as fees pertaining to the organization of the Fund, document preparation, regulatory filing fees, and accounting and legal costs. Syndication costs totaled $708,598 and $1,907,469 for the respective three and nine months ended September 30, 2014.

The Operating Agreement places a limit for syndication cost reimbursements to the Managing Member and/or affiliates. When added to selling commissions, such cost reimbursements may not exceed a total equal to 15% of all offering proceeds. As of September 30, 2014, syndication costs recorded in excess of the limitation were nominal. The limitation on the amount of syndication costs pursuant to the Operating Agreement is determined on the date of termination of the offering. At such time, the Manager guarantees repayment of any excess syndication costs (above the limitation) which it may have collected from the Company, which guarantee is without recourse or reimbursement by the Fund.

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Borrowing Facilities

9 Months Ended

Sep. 30, 2014

Borrowing Facilities [Abstract]

Borrowing Facilities

7.  Borrowing facilities:

Effective January 7, 2014, the Company has been added as a participant with AFS and certain of its affiliates in a revolving credit facility (the “Credit Facility”) with a syndicate of financial institutions. The Credit Facility is comprised of a working capital facility to AFS, an acquisition facility (the “Acquisition Facility”) and a warehouse facility (the “Warehouse Facility”) to AFS, the Company and affiliates, and a venture facility available to an affiliate. The line was set at $75,000,000 with an expiration date of June 2015. The lending syndicate providing the Credit Facility will have a blanket lien on all of the Company’s assets as collateral for any and all borrowings under the Acquisition Facility, and on a pro-rata basis under the Warehouse Facility. Such Credit Facility includes certain financial covenants.  The Company had no outstanding borrowings under the Credit Facility as of September 30, 2014.

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Guarantees

9 Months Ended

Sep. 30, 2014

Guarantees [Abstract]

Guarantees

9.  Guarantees:

The Company enters into contracts that contain a variety of indemnifications. The Company’s maximum exposure under these arrangements is unknown. However, based upon the Manager’s experience, there have not been any prior claims or losses pursuant to these types of contracts and the expectation of risk of loss is remote.

The Managing Member knows of no facts or circumstances that would make the Company’s contractual commitments outside standard mutual covenants applicable to commercial transactions between businesses. Accordingly, the Company believes that these indemnification obligations are made in the ordinary course of business as part of standard commercial and industry practice, and that any potential liability under the Company’s similar commitments is remote. Should any such indemnification obligation become payable, the Company would separately record and/or disclose such liability in accordance with GAAP.

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Investments in Equipment and Leases, Net (Schedule of Useful Lives of Lease Assets) (Details)	9 Months Ended
	Sep. 30, 2014
Minimum [Member] | Coal Terminal [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Useful lives of lease assets	50 years
Minimum [Member] | Aircraft Ground Support [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Useful lives of lease assets	15 years
Minimum [Member] | Transportation [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Useful lives of lease assets	7 years
Minimum [Member] | Materials Handling [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Useful lives of lease assets	7 years
Maximum [Member] | Coal Terminal [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Useful lives of lease assets	60 years
Maximum [Member] | Aircraft Ground Support [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Useful lives of lease assets	20 years
Maximum [Member] | Transportation [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Useful lives of lease assets	10 years
Maximum [Member] | Materials Handling [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Useful lives of lease assets	10 years

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Investment in Equipment and Leases, Net (Tables)

9 Months Ended

Sep. 30, 2014

Investment in Equipment and Leases, Net [Abstract]

Investment in Leases

The Company’s investment in leases consists of the following:

		Balance December 31, 2013		Reclassifications & Additions / Dispositions		Depreciation/ Amortization Expense or Amortization of Leases		Balance September 30, 2014
Net investment in operating leases	$	-	$	7,021,096	$	(370,933)	$	6,650,163
Initial direct costs, net of accumulated   amortization of $11,555 at September 30, 2014		-		111,674		(11,555)		100,119
Total	$	-	$	7,132,770	$	(382,488)	$	6,750,282

Property on Operating Leases

Property on operating leases consists of the following:

		Balance December 31, 2013		Additions		Reclassifications or Dispositions		Balance September 30, 2014
Coal terminal	$	-	$	5,000,000	$	-	$	5,000,000
Materials handling		-		1,751,997		-		1,751,997
Aircraft ground support		-		181,599		-		181,599
Transportation		-		87,500		-		87,500
		-		7,021,096		-		7,021,096
Less accumulated depreciation		-		(370,933)		-		(370,933)
Total	$	-	$	6,650,163	$	-	$	6,650,163

Future Minimum Lease Payments Receivable

At September 30, 2014, the aggregate amounts of future minimum lease payments receivable are as follows:

		Operating Leases
Three months ending December 31, 2014	$	128,665
Year ending December 31, 2015		1,602,816
2016		514,662
2017		196,243
2018		39,511
2019		28,079
Thereafter		7,044
	$	2,517,020

Schedule of Useful Lives of Lease Assets

As of September 30, 2014, the respective useful lives of each category of lease assets in the Company’s portfolio are as follows (in years):

Equipment category	Useful Life
Coal terminal	50 - 60
Aircraft ground support	15 - 20
Transportation	7 - 10
Materials handling	7 - 10

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Summary of Significant Accounting Policies (Narrative) (Details) (USD $)	9 Months Ended
	Sep. 30, 2014 segment
Number of operating segments	1
Number of reportable segments	1
Percentage of operating revenues	100.00%
Minimum [Member]
Required assets value of financial institutions for cash deposits	$ 10,000,000,000
Operating leases, initial terms	36 months
Operating leases, period for non-accrual status	90 days
Notes receivable, period for non-accrual status	90 days
Maximum [Member]
Cash deposits, insured amount	$ 250,000
Operating leases, initial terms	120 months
Operating leases, period of review for impairment	90 days
Notes receivable, period of review for impairment	90 days

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Members' Capital (Distributions to Other Members) (Details) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014
Members Capital [Abstract]
Distributions	$ 180,476	$ 287,888
Weighted average number of Units outstanding	1,029,531	721,007
Weighted average distributions per Unit	$ 0.18	$ 0.40

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Statements of Changes in Members' Capital (USD $)	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2014	Dec. 31, 2013	Dec. 26, 2012
Beginning Balance		$ 500
Capital contributions		12,738,640	500
Less selling commissions to affiliates	(425,127)	(1,144,467)
Syndication costs	(283,471)	(763,002)
Distributions to Other Members ($0.40 per Unit)	(180,476)	(287,888)
Distributions to Managing Member		(29)
Net loss	(36,847)	(177,986)
Ending Balance	10,365,768	10,365,768	500
Other Members [Member]
Beginning Balance
Beginning Balance (in units)
Capital contributions		12,738,640
Capital contributions (in units)		1,273,864
Less selling commissions to affiliates		(1,144,467)
Syndication costs		(763,002)
Distributions to Other Members ($0.40 per Unit)		(287,888)
Net loss		(177,515)
Ending Balance	10,365,768	10,365,768
Ending Balance (in units)	1,273,914	1,273,914
Managing Member [Member]
Beginning Balance		500
Beginning Balance (in units)		50
Capital contributions			500
Capital contributions (in units)			50
Distributions to Managing Member		(29)
Net loss		(471)
Ending Balance			$ 500
Ending Balance (in units)			50

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Notes Receivable, Net

9 Months Ended

Sep. 30, 2014

Notes Receivable, Net [Abstract]

Notes Receivable, Net

3.  Notes receivable, net:

The Company has various notes receivables from borrowers who have financed the purchase of equipment through the Company. The terms of the notes receivable are from 30 to 36 months and bear interest at rates ranging from 11.26% to 17.31% per annum. The notes are secured by the equipment financed. The notes mature from 2016 through 2017. There were neither impaired notes nor notes placed in non-accrual status as of September 30, 2014. The Company had no notes receivable outstanding prior to the second quarter of 2014.

As of September 30, 2014, the minimum future payments receivable are as follows:

Three months ending December 31, 2014	$	49,119
Year ending December 31, 2015		196,478
2016		185,768
2017		53,210
		484,575
Less: portion representing unearned interest income		(76,608)
		407,967
Unamortized initial direct costs		1,657
Notes receivable, net	$	409,624

IDC amortization expense related to notes receivable and the Company’s operating leases for the three and nine months ended September 30, 2014 are as follows:

		Three Months Ended September 30, 2014		Nine Months Ended September 30, 2014
IDC amortization - notes receivable	$	333	$	531
IDC amortization - lease assets		7,310		11,555
Total	$	7,643	$	12,086

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Notes Receivable, Net (Narrative) (Details)	9 Months Ended
	Sep. 30, 2014
Minimum [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Terms of the notes receivable	30 months
Notes receivable, interest rate	11.26%
Notes maturity period	2016
Maximum [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Terms of the notes receivable	36 months
Notes receivable, interest rate	17.31%
Notes maturity period	2017

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Borrowing Facilities (Narrative) (Details) (USD $)	0 Months Ended
	Jan. 07, 2014	Sep. 30, 2014
Borrowing Facilities [Abstract]
Maximum amount of credit facility	$ 75,000,000
Credit facility expiration date	2015-06
Outstanding borrowings		$ 0

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Notes Receivable, Net (Tables)

9 Months Ended

Sep. 30, 2014

Notes Receivable, Net [Abstract]

Minimum Future Payments Receivable

As of September 30, 2014, the minimum future payments receivable are as follows:

Three months ending December 31, 2014	$	49,119
Year ending December 31, 2015		196,478
2016		185,768
2017		53,210
		484,575
Less: portion representing unearned interest income		(76,608)
		407,967
Unamortized initial direct costs		1,657
Notes receivable, net	$	409,624

Initial Direct Costs, Amortization Expense Related to Notes Receivable and Company's Operating and Direct Finance Leases

IDC amortization expense related to notes receivable and the Company’s operating leases for the three and nine months ended September 30, 2014 are as follows:

		Three Months Ended September 30, 2014		Nine Months Ended September 30, 2014
IDC amortization - notes receivable	$	333	$	531
IDC amortization - lease assets		7,310		11,555
Total	$	7,643	$	12,086