On April 23, 2024, the Federal Trade Commission (FTC) announced the final version of the Non-Compete Clause Rule (the “Final Rule”) which provides that it is an unfair method of competition—and therefore a violation of Section 5 of the FTC Act —for employers to enter into noncompetes with workers after the effective date. The Final Rule will become effective 120 days after publication in the Federal Register, which FTC anticipates will likely be in early September. While certain types of businesses are exempt (those outside FTC jurisdiction such as banks, credit unions, common carriers, air carriers, and certain non-profits), the Final Rule applies to most small business borrowers. SBA Lenders should consult their legal counsel regarding applicability of the Final Rule to their institutions.