About this programme
ESOP Feasibility Study Assistance, run by the Iowa Economic Development Authority (IEDA), helps business owners cover the cost of the first step toward setting up an Employee Stock Ownership Plan (ESOP). An ESOP lets an owner sell the business to its employees when the owner retires or moves on, sharing equity with employees and giving them a retirement plan.
The program reimburses part of the cost of the feasibility study a company needs to do before it can decide whether an ESOP conversion makes sense.
How it works
IEDA reimburses 50% of the cost of the ESOP feasibility study, up to a cap of $25,000.
Reimbursement comes in two installments: half after the feasibility study is completed, and the remaining half after the ESOP is successfully formed.
For applications submitted on or after March 29, 2023, only feasibility study costs incurred after the financial assistance is approved can be reimbursed, so the study cannot already be underway or finished before applying.
Who can apply
The company must be Iowa-based and must not have already completed a feasibility study before applying.
Retail businesses are not eligible.
The company must be incorporated, or have a letter of intent to incorporate.
How to apply
- Review the program's application instructions before starting a feasibility study, since costs incurred before approval are not reimbursed.
- Complete and submit the ESOP Application form (.docx).
- Get financial assistance approved before incurring feasibility study costs.
- Complete the feasibility study to receive the first half of reimbursement.
- Form the ESOP to receive the second half of reimbursement.
Documents you’ll typically need
- ESOP Application form (.docx)
Frequently asked
How much of the feasibility study does the state cover?
50% of the cost, up to a maximum of $25,000.
When do I actually get the money?
In two installments: half after the feasibility study is complete, and the other half after the ESOP is successfully formed.
Can I apply after I've already started or finished the feasibility study?
No. For applications submitted on or after March 29, 2023, only costs incurred after your financial assistance is approved are reimbursable, so you need to apply and get approved before the study begins.
Are retail businesses eligible?
No. Retail businesses are excluded from this program.
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Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.