Assistance creating an ESOP feasibility study
Iowa incentivizes the creation of ESOPs to retain businesses. Companies with an ESOP can sell the business to its employees when the owners retire or start a new business. An ESOP allows owners to share equity with employees and provides a retirement plan for those employees.
The Iowa Economic Development Authority (IEDA) helps Iowa business owners complete the first step of setting up an ESOP - a feasibility study conducted by an independent financial professional.
- Reimburses 50% (not to exceed $25,000) of the cost incurred to obtain a feasibility study
- Reimbursement is dispersed in two stages: half is released upon conclusion of the feasibility study and the remaining half after successful formation of the ESOP
- Iowa offers a 50% reduction from state income taxes for the net gain from the sale of stock to an ESOP
- Must be an Iowa-based company
How to Apply
- Review the application instructions