Employee Stock Ownership Plan (ESOP)

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

Eligibility

  • Must be an Iowa-based company

How to Apply

  • Review the application instructions

Program Contact(s)

Lisa Connell
515.348.6163
businessfinance@iowaeda.com

 

 

 
Iowa Economic Development Authority
200 East Grand Avenue
Des Moines, Iowa 50309
Phone: 1.515.725.3000
email: Email Us

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