Employee Stock Ownership Plan (ESOP) Lending

Engage employees and raise capital

An employee stock ownership plan (ESOP) is an employee benefit plan that enables employees to acquire full or partial ownership of a company’s stock. It’s also a corporate finance tool that gives business owners another alternative to an Initial Public Offering (IPO) or an outright sale.

ESOP lending offers your company tax-advantaged liquidity, enabling you to partially or fully monetize your business equity interests.  ESOP transaction structures include:

  • Leveraged ESOP
  • ESOP Trust
  • Non-Leveraged ESOP

Studies also show that ESOPs have the potential to increase employee engagement, ultimately enhancing profitability, productivity and other performance benchmarks.

To see if ESOP lending makes sense for your business, talk with your Associated Bank relationship manager today.

Knowledge Center