Litigation and Violations

This section requires notice of any current material litigation and any previous violations involving the applicant and (or) any person/entity with at least 25% ownership interest in the applicant. The user will be asked to describe any current material litigation in this section and answer the questions shown in Figure 17. Users answering “Yes” to any of the questions will be asked to provide additional information in the second phase of the application evaluation process (if the application is moved to the second phase).

Figure 17: Litigation and Violations Questions

Key Definition:

Material Litigation - Any litigation deemed significant to the applicant's financial health and required to be referenced in the applicant's annual audited financial statements, or would be the type of information that is reported to shareholders, members, or similar individuals, or would be deemed material information that an investor or person providing capital would deem material in making a financial decision regarding the applicant.

Note: GO-Biz acknowledges many businesses, especially large ones, are often involved in litigation and/or have relatively minor violations on a regular basis. Being involved in material litigation or having a violation will not necessarily disqualify an applicant.