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Panel Proposals

Ongoing ESOP Operations

Maximizing Banking Relationships for ESOP-Owned Companies

Tuesday, April 15, 2025
2:15 PM - 3:15 PM MST
Location: 258
CE: 1
CE Type: CLE, CPE, SHRM
Education Level: Intermediate
From implementation to repurchase obligation, an ESOP company should expect their bank to have a working knowledge of how an ESOP works so that they can best support the company with its needs through the lifecycle of the plan. This session will provide an overview of how your bank gets up to speed on the plan and what requirements you might expect to see in loan documents. Some high-level information regarding how banks view debt facilities specifically related to ESOP company financing needs (transactions and repurchase obligations) will also be discussed.
NCEO Article: ESOP Company Boards: Approaching Banks for ESOP Loans

NCEO Tookit: Finance Toolkit

Learning Objectives:

  1. Clearly understand the criteria that an ESOP-owned company (or newly formed ESOP company) should evaluate during the process of selecting a banking partner.
  2. Be informed regarding what banks will expect from an ESOP company for onboarding the relationship, evaluating the risk profile for credit decisions, and what the reporting requirements will be on an ongoing basis.
  3. Be armed with the skills to maximize their banking relationship, including what questions to ask, what experience to require from the banking team, and what diligence they should expect the bank to perform.