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Your ESOP is too important for just any bank.
At First Bank of the Lake, ESOPs are handled by experts who understand the complexity, compliance, and execution required to get it right.
Your ESOP in 3 Simple Steps.
Share Your Details
Fill out our short form to give us insight into your business and help us guide you toward the right ESOP approach.
Talk To Angela
Connect with Angela, our ESOP expert, to share your ESOP objectives and ensure the right approach for your business.
Take the Next Step
If your project is a fit, Angela will help you gather the right documents and put together your SBA package.
Experience matters when your employees’ future is at stake.
With over 20 years in banking, I’ve helped business owners across the country successfully transition to employee ownership. From structuring the deal to seeing it through to closing, I focus on making the process clear, smooth, and tailored to each business.
How we’ve helped business owners make employee ownership a reality.
$7.0 Million
HVAC Company
Florida
Pari Passu Loan
Financed a 100% ESOP purchase, enabling full employee ownership and long-term succession planning.
$3.9 Million
Manufacturer
Ohio
SBA 7(a) Loan
Supported a 100% ESOP transition, helping preserve local jobs and secure the company’s legacy.
$4.5 Million
Construction Company
Texas
SBA 7(a) Loan
Funded a 100% ESOP buyout, giving employees full ownership and supporting continued growth.
$5.9 Million
Grocery Store
North Dakota
Pari Passu Loan
Provided capital for a 100% ESOP purchase in a rural market, sustaining a vital local business.
Every ESOP solution begins with a conversation.
If you’re ready to explore ESOP financing solutions, I’m ready to help.
Answers to your most common ESOP questions.
ESOPs can be complex and challenging projects and often come with a lot of questions. Check out these common FAQs to learn more, and if you need personalized guidance, don’t hesitate to reach out and book a meeting. I’m here to help!
An Employee Stock Ownership Plan (ESOP) allows employees to own shares in the company they work for. This model promotes employee engagement, loyalty, and aligns everyone’s success. ESOPs also provide business owners with a strategic succession or partial exit plan while preserving company culture and values.
SBA loans, particularly the SBA 7(a) loan program, are ideal for ESOP financing. They offer up to $5 million in funding, long repayment terms (up to 25 years in some situations), competitive interest rates, and lower down payments. SBA loans can cover the purchase of shares, operational costs, and valuation expenses, easing cash flow pressures during ESOP transitions.
The two primary SBA loans for ESOPs are:
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SBA 7(a) Loan: Versatile funding for share purchases, refinancing, and working capital.
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SBA 504 Loan: Specifically for acquiring physical assets like real estate or equipment, useful for ESOP-related expansion.
You’ll typically need to provide:
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Business financial statements and tax returns (usually 3 years)
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Detailed financial projections
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A comprehensive business plan explaining the loan purpose and repayment strategy
Lenders evaluate your business’s credit history, operational history, profitability, and ability to repay the loan. Presenting a strong business case showing how the ESOP benefits both employees and the company can improve your chances of approval and favorable loan terms.
With proper financing, companies can maintain stable operations during ownership transitions. SBA-backed loans provide the capital needed to cover share purchases without disrupting cash flow, allowing businesses to continue growth initiatives uninterrupted.
Employees often experience increased wages (5–12% higher on average), greater job satisfaction (reported by 94% of ESOP employees), and a stronger connection to company success due to shared ownership.
There are over 6,600 ESOP plans in the U.S., covering more than 14 million employees and representing assets exceeding $1.5 trillion.
ESOPs are specialized transactions that require deep understanding of both financing and employee ownership structures. Experienced lenders like First Bank of the Lake offer tailored solutions to support smooth ESOP implementation while preserving long-term company stability.
Act Now to Reserve Your ESOP Consultation
All loans are subject to credit approval. Restrictions and limitations may apply. First Bank of the Lake does not provide tax, legal or investment advice. All decisions concerning these matters should be made in conjunction with your professional advisors.•
*Top 1% of SBA 7(a) lenders by approval amount during SBA fiscal year 2023. Top 5 SBA franchise lender by approval count during SBA fiscal years 2024 and 2023.
Approved to offer SBA loan products under SBA's Preferred lenders Program.
