The Gallagher Law Firm Ezine: May 2007 Legal information for your business “Not having money is no sin. Not being able to come up with money when you need it is a big sin...” This quote is one of the many sayings I heard from a favorite client, now deceased, who had a unique gift for assessing situations, people risk and reward. He was an active investor who consistently made money in good and bad economic times and in several different types of investments. People in business immediately understand the obvious and profound simplicity of this quote. Access to money in short order may allow them to either take advantage of a money making opportunity that may not last long or continue to hold on to assets that may appreciate in value. Most people in business have observed an opportunity they could not act on for financial reasons or were forced to sell an asset that continued to appreciate for the new owner. Many have been asked by business owners to float them a loan or invest in a “good deal”. Often these situations reveal symptoms of multi-personality disorder among the participants as the transaction progresses from sales pitch, to the loan/investment, to the management of the enterprise and then to eventual repayment or non-repayment of the loan/investment. Lending to and investing in businesses is an inherently risky activity. Some lenders or investors are blinded by the high interest rate or proposed return and ignore obvious deficiencies in the character of the person they are dealing with and/or source of money for repayment. A review of my Loan Checklist for business loans (PDF) and a conference with your attorney to discuss the specific terms before making or asking for a business loan will make the process go much more smoothly. Take a look at this loan checklist from Michigan.gov. (PDF) Purchasing or selling an equity investment in a corporation or limited liability company requires considerable risk, financial analysis and potential legal problems. The below link to the website of Michigan’s Office of Financial Institutions Bureau will provide you with a disclosure document developed by the North American Securities Administrators Association for a public offering that provides a great outline and checklist for non-public offerings (PDF) as well. Also, Michigan, other state and Federal Security Laws may come into play and should be considered. Click here (PDF) for a nice overview of Michigan law. Find out how your business can possibly benefit from SBA (Small Business Administration) financing. SBA offers more flexible financing options than the ordinary bank can make. The SBA can increase the opportunity for your loan to get approved or offer longer repayment terms to improve your cash flow. JP Morgan Chase Bank is presenting our next luncheon seminar on May 22nd to discuss the options available in dealing with most SBA lending programs (7a, 504, and Express). Please RSVP by May 18th to Pam Palmer at psp@thegallagherlawfirm.com or (517) 853-1525. Click on the link below to view this document. SBA_Brochure_for_Chase.pdf The Gallagher Law Firm, PLC provides a regular schedule of luncheon speakers on topics affecting your business (see below for what is on the calendar). These luncheons last about one hour and are held at noon on the 3rd or 4th Tuesday of each month at the Country Club of Lansing. There is no cost for current firm clients. Non-clients may attend at a cost of only $25. Let us know if you have a topic suggestion that would be good for a luncheon lecture or if you would like to be a presenter at a luncheon lecture. As always, we welcome your thoughts and encourage you to reply by email or telephone. Sincerely, Pat Gallagher bpg@thegallagherlawfirm.com Tel: (517) 853-1515 News Pat Gallagher was re-elected to a four-year term to the Board of Directors of SCB Bancorp, Inc. at the annual shareholder meeting on April 26, 2007. SCB Bancorp, Inc. is the holding company of Summit Community Bank. Gallagher also serves on the Executive, Audit and Personnel Committees and is the Chairman of the Business Development Committee. Pat Gallagher was invited to speak by the Thomas M. Cooley Law School Business Law Society on Wednesday June 13 on the topic of “Current Trends in Business Law and Tips on Building a Successful Career as a Business Attorney”. Upcoming Luncheon Seminars (Held at Lansing Country Club): May 22nd - 12:00PM    “Taking Care of Business with the Small Business Administration” Learn how your business could benefit from SBA financing presented by JP Morgan Chase Bank   June 26th - 12:00PM    “Guide to Capturing a Piece of the American Dream” Highlights of franchise ownership presented by Jeff Shafritz of Franchoice. Please contact our office at (517) 853-1525 for registrations of the above luncheon seminars. Clients free, $25 non-clients. Another free seminar being held which may be of interest: “Changes in Construction Lien Act and 1031 Property Exchanges” Presented by Professional Title Agency on May 22, 2007. Held at East Lansing Hannah Community Center. Seminar: 9:00 am – 12:00 pm. Information or RSVP to jstafford@protitleinsurance.com or (517) 333-2526. Click on the link below to view this document. Professional_Title_Invitation.pdf Estate Planning Question of the Month: Won’t joint accounts take care of the passing on of my assets? Unless you have only one child, this is inadvisable because it is impossible to keep separate accounts for more than one child equal. This is especially true if you become incapacitated and no longer have control over the accounts. Trying to save a few dollars by managing your estate in this fashion runs the strong risk of causing discord in your family for generations to come. Why take the chance? Click here to read more. Upcoming Estate Planning Seminars: Click on the link below to view this document. Gallagher_May_EP_Seminar.pdf May 22nd 7:00-8:30PM Comfort Inn of Okemos May 23rd 10:00-11:30AM Holiday Inn South of Lansing Please contact our office at (517) 853-1500 or (888) 595-1690 for seat availability and registration for the above free seminars. Pat Gallagher and Craig Gerard will be speaking for Lorman Education on the “The Eight Greatest Estate Planning Techniques in Michigan” on Wednesday, July 18, 2007. Location: MSU’s Kellogg Hotel and Conference Center, East Lansing. Registration and information: (866) 352-9539.