Est. 1953, SBA is the only cabinet-level federal agency fully dedicated to small business and provides counseling, capital, and contracting expertise as the nation’s only go-to resource and voice for small businesses.

An autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically-controlled enterprise

Refers to the M&A practices of EO companies, e.g., ESOP companies purchasing other companies

Wealth inequality is a global phenomenon in which the rich are growing richer, and the poor poorer.

An assessment of the required non-financial elements in selling a business, e.g., required people/talent, knowledge, partnerships, documentation, communication, etc., required for ongoing business success post-sale. Sometimes called the "people and process" aspect of feasibility.

When a plan is terminated, all participants become fully vested and distributions must begin as soon as administratively feasible, generally within a year of the plan's termination.

The degree of influence that second or third parties may have over a seller's ultimate decision to sell their business, for what price, on what terms, etc. When buyer autonomy meets seller autonomy the possibility of selling at a truly fair market value (FMV) is created.

In a seller financed business sale, the seller allows the buyer to pay off a portion of the price of the business over time with interest.

The right of redemption allows homeowners who have defaulted on their mortgages to reclaim their property by paying the overdue amount, including interest and penalties, either before or sometimes after a foreclosure sale.

Microfinance, also called microcredit​, is a type of banking service provided to low-income individuals or groups who otherwise wouldn't have access to financial services. Microloans can range from as small as $50 to under $50,000.

Employee owned companies which are 100% owned by the employees, whether through an ESOP, EOT or worker co-op.

The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans.

Specific forms of communication to employee owners by sponsoring companies that may be organized by a Communications Committee, and which often are used to educate employees about the rights and benefits of ownership

The threshold rate of return is the minimum return that an investor can expect to achieve when investing in a project. It is influenced by the risk of the investment, the liquidity of the investment, and inflation

An accountant is usually certified in their jurisdiction, using titles such as “Certified Public Accountant”, and qualified to advise on tax laws, analyze financial statements, and perform audits.

409A plans are a type of non-qualified deferred compensation plan for compensation that has been earned by an employee but not yet received from their employer. Because the ownership of the compensation—which may be monetary or otherwise—has not been transferred to the employee, it is not yet part of the employee's earned income and is not counted as taxable income

A PEO is a company which offers employment as a service, with the PEO typically becoming "employer of record" for one or more of a company's employees for the sake of shared services such as payroll, benefits, etc.

When starting a business, the founding owner(s) often fund the business before it is bringing in enough money to cover its expenses. They may do this by working unpaid hours and/or using personal money to purchase supplies, uniforms, printing, postage, etc.

A private pass-through business that is owned wholly or partly by an ESOP, and as a result, the company’s gains rebound to the benefit of its employee-owners.

S corporations pass their income, losses, deductions, and credits to shareholders for federal tax purposes, allowing these amounts to be taxed at individual rates and avoiding double taxation.

Unique considerations for creating EO legal documents such as an EOT Trust Agreement or worker co-op bylaws

The Employee Impact Index™ illuminates company top opportunities to leverage changes in the operational and managerial practices that have known correlations to improved human capital and financial KPIs. Index scores provide the business with an actionable roadmap to success.

A quality of earnings report is a routine step in the due diligence process for private acquisitions. The report assesses how a company accumulates its revenues – such as cash or non-cash, recurring or nonrecurring.

Diversity: The representation of different groups in an enterprise. Equity: giving people what they need based on their unique circumstances. Inclusion: being seen, understood, and valued as an individual, with a unique identity, skills, and experience

A US governmental agency whose mission is to protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation.

Equity is found on the Balance Sheet and equals Assets minus Liabilities. In other words, it is the difference between what we own and what we owe. It can also be considered as net value, or the amount that would be left over if a company liquidated (i.e. turned into cash) all its assets and repaid all its debts.

Frequently asked questions about Zolidar, employee ownership, and business exit planning

the aggregate market value of a company represented in a dollar amount

Members contribute equitably to, and democratically control, the capital of their cooperative. At least part of that capital is usually the common property of the cooperative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing their cooperative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.

Cooperatives are democratic organisations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. In primary cooperatives members have equal voting rights (one member, one vote) and cooperatives at other levels are also organised in a democratic manner.