The New Jersey Economic Development Authority (NJEDA) has announced the opening of applications for its Employee Stock Ownership Plan (ESOP) Assistance Program. This initiative, approved by the NJEDA Board in April, seeks to enhance employee ownership models within the state. The program is designed to provide employees with increased opportunities for business involvement, generate sustainable and equitable wealth, and offer greater financial security while aiding business owners with transition planning.
According to the NJEDA, "The ESOP Assistance Program will connect applicants with an approved contractor to perform feasibility study services and provide technical assistance in the creation of an ESOP." An ESOP allows employees to hold interest in a company's shares through corporate stock held in a trust. The program aims to replicate successful outcomes seen both nationwide and across New Jersey.
Currently, New Jersey hosts nearly 90 ESOPs, encompassing approximately $65 billion in plan assets and covering over 423,000 current employees and retirees. Eligible businesses interested in applying must be based in New Jersey, employ at least 20 full-time workers, and maintain good standing with relevant state departments.
In February, Onyx Partners Group and Lazear Capital Partners were selected as contractors for this program due to their experience with ESOP transitions. Applications are now open and will be accepted on a rolling basis. For further inquiries regarding eligibility or other details about the program, individuals can contact ESOPAssistanceSupport@njeda.gov.
