Esop

**Mynameisbob** · 08-26-2019, 08:48 AM

Who can fund an ESOP? (Employee stock ownership program.)

Company does 18M annually in the construction space.

I don’t even know where to begin as far as getting the application and ownership%.

**Lendvo** · 08-26-2019, 11:27 AM

What exactly do you mean "Who can fund an ESOP" ?

As in a loan against some stock portfolio or a loan to allow for the purchase of securities?

**Mynameisbob** · 08-26-2019, 12:01 PM

The company is an esop, meaning the employees of the company own certain percentages of the company. There is not one sole owner that has more than
51%.

**Kevin Henry-Seacoast** · 08-26-2019, 12:03 PM

Originally Posted by Mynameisbob

Who can fund an ESOP? (Employee stock ownership program.)

Company does 18M annually in the construction space.

I don’t even know where to begin as far as getting the application and ownership%.

Mynameis Bob,

PCE Companies in Orlando is one of the most respected investment banks in Florida. Most their transactions are ESOPs. Perhaps they might have some ideas.

KH

**omegafund** · 08-26-2019, 12:15 PM

But who can actually sign? Anyone that has 5% or combined 20%? We have done deals with only 5 % signing if they have authority.

**Kevin Henry-Seacoast** · 08-26-2019, 12:17 PM

Originally Posted by omegafund

But who can actually sign? Anyone that has 5% or combined 20%? We have done deals with only 5 % signing if they have authority.

You need to see the operating agreement to determine who has authority to sign.

**omegafund** · 08-26-2019, 01:15 PM

Originally Posted by Kevin Henry-Seacoast

You need to see the operating agreement to determine who has authority to sign.

certainly that would be needed.

**BB_Cooper** · 10-19-2022, 01:36 PM

Does anyone have any experience with 7(A) SBA lender financing and ESOP?

**Olderguy** · 10-19-2022, 01:56 PM

SBA requires 21% or more ownership (people) to sign. Any ownership less than 21% don't sign loan docs. Not sure that answers your question. If you can semd me specifics I can run it by my SBA and term loan guy. Let me check to see if they can even do a ESOP.

**Olderguy** · 10-20-2022, 12:14 AM

You can do a SBA 7A with an ESOP.

Loan proceeds may be used for two purposes:

• Help finance the growth of an employer’s
small business.

• Purchase a controlling interest (51 percent or more)
in the company. Ownership and control must vest in
the trust by the time the loan is repaid.

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