As I write this letter, voters throughout Michigan have just been to the polls to make decisions that will have far-reaching consequences for the future of our state. For a variety of reasons, including term limits, substantial changes in the leadership of Michigan are about to occur. Regardless of the outcomes at the polls, one expects that our elected leaders will find productive means of working together with the citizens of Michigan to chart a more prosperous way forward for our businesses, workers, and their families. The Business Law Section will continue to pursue its mission: to "Foster the highest quality of professionalism and practice in business law and to enhance the legislative and regulatory environment for conducting business in Michigan."
Report of the Michigan Ad Hoc Committee on Legal Opinions
Many clients inquire about the availability of financing in today's market. For the past months, most of us have had little helpful information. Even though some lenders actually have surplus liquidity, many would-be borrowers have been declined. Banks have cited concerns about the value of collateral or simply that the borrower has inadequate financial performance. As a result of recent changes to the definition of a "small business company" in the Small Business Jobs Act of 2010, borrowers and projects once considered too large will fit nicely in the program. Specifically, any business having tangible net worth not more than $15 million and annual profits of not more than $5 million satisfies the size requirements for a borrower under the SBA programs. While the borrower and project also must meet other program requirements, these substantial increases allow many more businesses to be eligible for these loans. Interested businesses should discuss these issues with a lender.