Jonathan M. Schalit

Associate, Greenberg Traurig, LLP

40 Under 40 Category: Legal Services

Biography:

Jon is an associate at Greenberg Traurig, LLP with a practice focused on traditional asset-based financings across a wide variety of industries and financings and strategic transactions for clients in the entertainment and media industries. Jon drafts and negotiates full sets of transaction documents as the lead associate on deals for Greenberg Traurig, from term sheets and commitment letters to credit, security and inter-creditor agreements.

Jon earned a B.A. degree from Columbia University in 2004 and a J.D. degree from the University of Pennsylvania Law School in 2007.

Jon is certified as a volunteer preparer of income tax returns for the Internal Revenue Service’s Volunteer Income Tax Assistance program and has assisted low-income individuals and families with their federal and state income tax returns in Philadelphia, New York City, and Orange County.

Jon is a member of the ASPCA, the SPCALA, and Southern California’s Dedicated Animal Welfare Group, and lives in the Los Angeles area with his wife, Cindy, and their two cats.

Is there a piece of professional advice that you would give yourself if you could go back in time?

If I could go back in time and give myself a piece of professional advice, I would tell myself to confer with the business development, underwriting and relationship management personnel on each deal as early as possible.  I have found over the years that business development team members have important business insights and objectives that inform drafting and negotiating term sheets and commitment letters, while relationship managers often have preferences for the day-to-day administration of a loan that may require sign-off from underwriters and is, at times,  at odds with initial versions of credit approvals.

How do you think the commercial finance industry can attract more young professionals?

I think that the commercial finance industry can attract more young professionals by highlighting the industry sectors and unique elements of contemporary finance transactions. Every borrower and every deal is different, and part of what makes finance work so interesting is that considerations for a loan to a borrower in one industry may be completely different from considerations for a loan to a borrower in a different industry.  Each deal is a chance to immerse oneself in a new field.

For example, a loan to a diversified supermarket chain requires an examination of the Perishable Agricultural Commodities Act with respect to certain inventory, an analysis of the ability of a secured party under applicable laws and regulations to foreclose on alcoholic beverages and restrictions on sales thereof, and an inquiry into HIPAA and related healthcare laws, rules and regulations regarding realization on collateral consisting of pharmacy prescription lists and pharmaceutical products themselves.

On the other hand, a loan to a film producer to finance a film that will be distributed globally implicates an entirely different set of concerns. Such a loan requires, among other things, an understanding of the relationship between the producer and its sales agent, an analysis of the financial strength of distributors, a negotiation of waivers from such distributors of defenses to payment under their respective distribution agreements, a review of the enforceability of a judgment against non-U.S. entities under the laws of various foreign jurisdictions, and an examination of the claims of actors, directors, and writers to proceeds of the film under collective bargaining agreements.

Commercial finance offers today’s young professionals avenues to explore any industry that interests them.

What role has mentoring played in your career?

Mentoring has been critical in my development as an attorney.  My mentors have played a central role at each stage of my career, from explanations of provisions of loan documents as a junior associate, to understanding the legal and business risks of often-requested compromises from opposing counsel as a mid-level associate, to client relationship management and collaborative loan document form creation as a senior associate.  I believe that there is truly no substitute for mentoring from senior attorneys who are invested in one’s career, as I have been lucky to have.