Main Street Employee Ownership Act

The  Main Street Employee Ownership Act was recently enacted and is  good news for business owners looking for a way to exit their businesses. The Act encourages creation of ESOPs or worker coops by facilitating transactions via loans supported by the SBA, and also encourages business owners to consider employee ownership.The full text of the act can be accessed here: https://www.congress.gov/bill/115th-congress/house-bill/5515/text?q={%22search%22%3A[%22National+Defense+Authorization+Act%22]}&r=2#toc-HB41E549389AF4C138AB98FA72E7A6A1C

WHY CONSIDER AN ESOP?

An ESOP is not right for every business. There are tax advantages, but the administration can be expensive. The business needs to be profitable and there should be a strong management team. The first step is to find a service provider who can facilitate the transaction. The National Center for Employee Ownership http://www.nceo.org is a good place to start. The second step is usually a valuation of the business that gives the business owner an idea of what the selling price will be. A decision can be made at that point as to whether to proceed.