ESOP Feasibility Study Reimbursement Program

ESOP Feasibility Study Reimbursement

Supports Iowa employers exploring employee ownership through feasibility study reimbursement for transition planning.

The ESOP Feasibility Study Reimbursement Program is administered by the Iowa Economic Development Authority (IEDA) to assist Iowa businesses in exploring a transition to employee ownership through an Employee Stock Ownership Plan (ESOP). The programme reimburses 50% of the costs of a completed ESOP feasibility study, up to a maximum reimbursement of $25,000. Reimbursement is disbursed in two stages: half is paid upon completion of the feasibility study, and the remaining half is released after the ESOP is formally established. Only costs incurred after IEDA approves the financial assistance are eligible for reimbursement — expenses paid before approval cannot be claimed. Applications are accepted on a rolling basis with no fixed deadline cycle.

To be eligible, an applicant must be an Iowa-based corporation. Other legal structures (LLCs, partnerships, and similar) are ineligible unless the applicant submits a letter of intent describing plans to incorporate before the feasibility study begins. Retail businesses are excluded regardless of size or other qualifications. Applicants must not have completed a prior ESOP feasibility study before applying — the programme is specifically designed for companies at the earliest stage of investigating employee ownership. There is no minimum or maximum employee count or revenue threshold specified in the programme rules.

The practical path to approval begins with contacting IEDA before initiating any study work, as only post-approval costs count. Applicants should select a qualified ESOP consultant, obtain IEDA approval, and then commission the feasibility study — this sequencing is required to preserve reimbursability. The two-stage payment structure means recipients who do not ultimately form an ESOP will only receive the first half of the reimbursement. Contact Megan Andrew at Megan.Andrew@IowaEDA.com or 515-348-6147 for application details.