SBA SOP 50 10 8, C.Ch1.C.15 — Businesses owned by ESOPs
Verbatim text of SBA SOP 50 10 8 section C.Ch1.C.15 (Businesses owned by ESOPs), effective 2025-06-01. 1 provision(s) quoted from the SOP PDF. SBA's own document page serves superseded editions, and the SOP is further amended by policy notices — read this with the notices that touch it.
Verbatim regulatory text
Verbatim provisions from SBA SOP 50 10 8, C.Ch1.C.15 — Businesses owned by ESOPs — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
SOP 50 10 8 C.Ch1.C.15
15. Businesses owned by ESOPs CDCs may make loans to an eligible business owned or controlled by an ESOP or equivalent trust. The ESOP must be in compliance with IRS, Treasury, and Department of Labor requirements. Prior to first disbursement, the CDC must obtain documentation that the ESOP or equivalent trust meets the requirements of all applicable IRS, Treasury, and Department of Labor regulations. The IRS prohibits ESOPs from guarantying a loan; therefore, SBA does not require the ESOP to guarantee the loan. All owners of the Applicant who hold an ownership interest in the small business outside the ESOP are subject to SBA’s guaranty requirements. The application cannot be structured as an EPC/OC. 16. Ineligible Costs 13 CFR § 120.884 Any costs not directly attributable to or necessary for the Project may not be paid with proceeds of the 504 loan.
Operationalizing SBA SOP 50 10 8, C.Ch1.C.15 — Businesses owned by ESOPs
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To work from the whole rulebook rather than this one page: download the corpus — every register on this site, verbatim, each with its source snapshot and effective date — then follow the methodology. It asks your assistant to answer only from the downloaded text, cite the register id and effective date it used, and tell you when the corpus does not cover something instead of filling the gap from memory. Running it locally also means no one sees which regulations you are looking at.
Source of record: https://claudeforcompliance.com/regs/sba-sop-c-ch1-c-15/
· register sba-sop-c-ch1-c-15 · Claude for Compliance. Free to read and download;
see regulatory updates and methodology.