Rebalancing is an annual process for cash-holding ESOPs that ensures all plan participants have the same percentage breakdown of cash and company stock that the overall ESOP trust holds. Rebalancing does not increase or decrease the face value of an ESOP participant’s account balance

Any unique taxation considerations for EO companies, e.g., taking a 1042 capital gains tax deferral

Refers to any unique auditing or testing pertaining to EO companies, such as 409(p) S ESOP anti abuse testing.

Any risks uniquely pertaining to EO companies, e.g., repurchase obligation in ESOP companies

Money lent for impact investment purpose at below market interest rates but with an expectation of getting the money back

Unusual circumstances for EO companies, e.g., publicly traded EO, bank as EO sponsor, LLC ESOP's, etc.

This is a plan which can fund all or part of living expenses after a business owner retires. There is a federal law known as ERISA which defines most retirement plans, participant rights and protections. An ESOP is a type of qualified retirement plan.

Refers to any EO transaction completed without the use of debt, such as nonleveraged ESOPs in which the sponsoring company contributes cash to the ESOP, which is used by the ESOP to purchase the employer's stock, or the employer contributes its stock directly to the ESOP