Enforceability of Non-Compete Agreements In Florida, non-competition agreements are not enforceable, unless it is supported by the existence of one or more legitimate business interests. Section 542.335, Florida Statutes, governs the enforcement of a non-compete agreement, and it provides a list of business interests that would support enforceability. Specifically, the […]
When the deal is done and the parties shake hands, people are mostly optimistic that the other party will perform as agreed. It’s typically only when something goes wrong, that’s when the parties will look to the terms of the written agreement to determine who is liable. It happens more […]
Derivative litigation occurs when a shareholder sues another shareholder, officer, or director of the company for misconduct that harms the company. In many derivative lawsuits, the facts are similar: the majority in control of the company commits some wrongdoing (i.e. stealing corporate funds or misdirecting corporate opportunities), and the minority […]
The Paycheck Protection Program (“PPP”) was a program approved by Congress in 2020 to support American businesses through the coronavirus pandemic as a part of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) and later modified by the Paycheck Protection Program Flexibility Act in June of 2020. The […]
On July 15, 2021, the SBA issued its procedural notice regarding lender requests to the SBA for guaranty recovery of PPP loans. The PPP loan program has offered billions of dollars in assistance to small businesses across the country. However, many PPP borrowers have since begun defaulting on their loans. […]
Many secured creditors and equipment leasing companies have encountered defaulted debts, where the debtors and lessees retain possession of the collateral, including cars, boats, machinery, or other equipment. The debt is secured by personal property, but creditors are often faced with the same quandary: how to quickly take possession of […]
The SBA, through the Office of Credit Risk Management (“OCRM”), monitors and oversees the activities of all its lenders and CDCs to ensure it is effectively following loan program requirements and protecting the integrity of the SBA program. In the event an SBA lender or CDC demonstrates an unacceptable risk […]
The SBA Office of Credit Risk Management (“OCRM”), conducts continuous, risk-based lender oversight on all SBA lenders and CDCs. As part of this oversight, the OCRM conducts periodic on-site audits to evaluate the lender or CDC’s portfolio performance, credit administration, compliance with loan program requirements, and SBA operations management. 13 […]
When a SBA loan is in liquidation status, lenders and authorized CDC liquidators are required to perform “Prudent Liquidation.” This means that lenders and authorized CDC liquidators must liquidate and conduct debt collection litigation in a “prompt, cost-effective and commercially reasonable manner, consistent with prudent lending standards, and in accordance […]
If a borrower defaults on a SBA loan, the lender or CDC must assess the environmental risk of contamination before conducting any liquidation action that could result in a loss, or otherwise increase the risk of loss, due to the actual or alleged presence of contamination. Lenders and CDCs assess […]