From the office of Senator Kirsten Gillibrand:

WASHINGTON, D.C. — U.S. Senator Kirsten Gillibrand called on the Small Business Administration (SBA) to aid small businesses with Employee Stock Ownership Plans (referred to as ESOPs) by expanding their eligibility for receiving SBA relief loans in the wake of the COVID-19 crisis. Small businesses across the country are struggling to respond to the COVID-19 crisis that has required many to cut back services or close their doors. Now, due to their unique ownership structure, ESOPs are having difficulty applying and receiving relief loans. In a letter, Senator Gillibrand urged the SBA to facilitate access to loans through the Preferred Lending Program and eliminate the investor equity injection requirement for ESOP loans.

“As the country braces for the full impact of COVID-19, ESOPs may not be able to survive this disaster if they are unable to receive federal aid,” said Senator Gillibrand. “Small businesses need urgent assistance to prepare and respond to the economic crisis caused by this pandemic. In this critical time, I urge the SBA to facilitate access to relief loans and eliminate lending delays and eligibility restrictions for ESOPs.” 

Following Gillibrand’s push, Democrats secured expanded eligibility for access to Economic Injury Disaster Loans (EIDL) to include ESOPs, Tribal businesses, and cooperatives in The CARES Act (Sec. 1110), phase three of the coronavirus emergency package.

The full letter can be found here