Tennessee to Help Fund the Costs of ESOP Feasibility Studies

The Tennessee Center for Employee Ownership (TNCEO) announced the creation of the Tennessee Employee Ownership Business Assistance Program. Funded by a $500,000 grant from the Tennessee Department of Economic and Community Development (TNECD), the program will provide technical assistance funding to eligible Tennessee businesses over the next three years. Eligible businesses may be reimbursed 50% of the cost of an ESOP feasibility study and transaction costs, up to $25,000 per business. 

“Helping Tennessee businesses plan for the future is an important part of strengthening local economies, particularly in rural communities,” stated Deputy Governor and TNECD Commissioner Stuart C. McWhorter. “Employee ownership is not the right fit for every business, but when it is, it can help preserve jobs, keep businesses rooted in their communities, and give employees a stake in the value they help create. Through this program, we are helping business owners access the expertise they need to determine whether an ESOP is the right path for their business and its future.”

Tennessee now joins Michigan, New Jersey, Pennsylvania, and Colorado in providing funding support for feasibility analyses for employee ownership. The TNCEO's page on the program states that applications are expected to open in the first quarter of 2027; at this point, interested persons can fill out a form to express their interest, receive information, and be contacted when applications open.