Default Rates on ESOP Loans, 2009-2013

Based on an NCEO analysis of 1,232 leveraged ESOP transactions at three large banks, 1.3% of ESOP companies in the sample defaulted on their loans in a way that imposed losses on their creditors for loans in effect between 2009 and 2013 (or an annual rate of 0.2%).

ESOP Companies and the Paycheck Protection Program: Survey Results

We surveyed ESOP companies starting on April 10 in order to gather data on how they are faring so far in the application process. As of this writing, we have received 164 responses from companies with ESOPs. Of these, 115 or 70% have already submitted a PPP loan application, and most of the rest are actively working with a lender.
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ESOP Tax Incentives and Contribution Limits

Congress has enacted tax incentives for employee stock ownership plans (ESOPs) that provide advantages for not only the sponsoring company but also the employees, the lender to an ESOP, and selling shareholders in closely held companies.

ESOPs and Preferred-Status Certification

Challenges and Opportunities for Employee Stock Ownership Plans and Business Preference ProgramsPart 1: Goals and features of preferred-status certifications Updated August 2, 2017