An Initial Coin Offering (ICO) is a certain form of funding which uses cryptocurrencies. The funding is typically done with a public crowdfunding campaign, however, private funding is starting to become popular also. The coins or tokens are bought by investors using Bitcoin, Ethereum, or other forms of cryptocurrencies. The coins can also be purchased with legal tender. Many startups like to use ICO’s because they fall outside of currency regulations and guidelines and in turn offer a bit more flexibility and freedom.
The first thing you need when you are putting out your ICO is a Whitepaper. A white paper is an informational and authoritative one-sheet which explains the complexities involved with a particular ICO. And the lawyer you choose should have the know-how to challenge any discrepancies they see within the whitepaper documentation. This refers to both the technical and legal aspects of the paper. You don’t want to take this step lightly and getting the best lawyer possible will save you a great deal of time and money in the future.
Make sure both you and the lawyer you choose are clear on the process and the pricing. There are many stories of those who send out their ICO without enough clarity in what they are looking for and how they want to go about it. Again finding a lawyer who has the wherewithal on this point will save you time and money as well, not to mention a lot of headaches.
Many businesses tend to over the look implications a token or coins’ design may have. Your lawyer should take care in drafting all documents so that the ICO presented falls into the category of a security token. If this step is not done in the correct manner you could be simply wasting valuable time and will not be taken seriously by any investors.
Below are some other things that you’ll want to make sure are covered by the lawyer you hire.
A good ICO lawyer will analyze the current regulatory compliance measures and assure that your coin fits all categories. They will also draft the correct pre-Crowd Token Offer and the Crowd Token Offer agreement.
One last thing you should think about when hiring a lawyer to help with your Initial Coin Offering is marketing. Your lawyer should perform a legal review of your ICO’s promotional and or marketing materials and make sure they are within legal guidelines before you send anything out.
So when you are starting the process of you Initial Coin Offering, remember hiring the right lawyer could make or break your venture.
You had an idea and ambition.
You worked hard. You did everything you could to make it work.
Unfortunately, that isn’t always enough to make a small business into a success. One of the most frightening aspects can be figuring out how to repay SBA loan defaults.
Here’s our advice for getting started.
SBA Loan Defaults
An SBA or Small Business Administration loan is a loan given to qualifying small businesses. Regular lenders provide the loan and handle all the details while the SBA guarantee’s a portion of the loan amount.
Since starting or expanding a small business is inherently risky, many banks won’t deal with them without the SBA guarantee. If you are forced to default on the loan a bank will begin standard collection procedures.
Generally, a bank will contact you to attempt to establish a payment plan. In cases where there is no ability to make payments, other measures will be taken.
The lender can seize any property put up as collateral on the loan. They can also get a court order for money in accounts owned by the business. At this stage, it can be very helpful to contact SBA attorneys for assistance.
If the business itself has failed and there are no assets left for repayment, any personal guarantee made on the loan goes into effect.
Personal & SBA Guarantee
SBA lenders require individuals with more than a 20% stake in the small business to sign what is called a personal guarantee. In this guarantee, they pledge their own assets as additional collateral for the loan.
This happens in the event of SBA loan defaults that exceed the ability of the business to pay them. The bank can go after personal accounts, cars, and other assets.
We know that this especially can be terrifying. You’ve just seen your business fail, and now creditors are trying to take your house, car and the money you have left.
Once a lender has exhausted all over avenues for collecting on the debt, they can file for relief from the SBA. SBA loans are guaranteed at different percentages depending on the type of loan issued.
Things You Can Do
The first thing we recommend is to contact your lender before you are in default if you are having trouble making payments. In many cases, they can work with you to develop a payment plan or reduce the cost of your loan.
Once you’re in default you should hire a lawyer. We know what you’re thinking, another expense, but trust us, it’s worth it.
We specialize in dealing with these kinds of defaults. We know all the ways to minimize the impact SBA loan defaults will have on your personal assets and future credit.
Get Your Life Back
When you’re in the middle of a default it can seem like it will never end. The calls from collectors, the sternly worded letters and court orders that tell you how much of your assets you’ll lose today. Thankfully, there is light at the end of the tunnel.If you need to find an attorney for an SBA loan default or for other legal issues, check out our useful tool here.