Upcoming Events

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LevelUp Coops: Generative AI Lunch & Learn (Virtual)

Roger joins us on March 28th Big News! 🚀 Roger Cawdette, AI visionary and CEO of Village, joins us at the LevelUp Coops: Generative AIRead More »
Posted inEvents, The Worker Cooperative Business Development Initiative (WCBDI), Worker Cooperatives

Renaissance Small Business Conference

Celebrate Lunar New Year with the Renaissance Small Business Capital Pavilion This February 26, 2024, mark your calendars for an exclusive event that promises toRead More »
Posted inEvents, New Ownership Opportunities
8th Annual Home Care Conference flyer

8th Annual National Home Care Cooperative Conference | La Octava Conferencia Nacional de Cooperativas de AtenciĂłn Domiciliaria | ika-walong taunang Pambansang Kumperensya ng Kooperatiba ng mga Tagapag-alaga

English     In the past 10 years, the home care cooperative movement has experienced significant growth. Beginning with only five home care cooperatives inRead More »
Posted inEvents
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LevelUp Coops: Discover CRM + AI / Descubre CRM + AI

Español abajo Join us Nov. 29th for a transformative experience where you'll learn the essentials of Customer Relationship Management (CRM) and how AI can elevateRead More »
Posted inEvents, New Ownership Opportunities

Safeguard Your Business: Nov 16th, 8:30am-10:30am

Join us on November 16th for an edition of the Safeguarding Your Business - Practical Business Education For Sole Business Owners series. This in-person andRead More »
Posted inEvents, Past Events, Succession Planning

Debrief from the 7th Annual Home Care Conference

Homecare Cooperatives Changing the Industry Our Highlights from the 7th Annual National Home Care Cooperative Conference Our team had an amazing time at the 7thRead More »
Posted inHome Care, Past Events

SBA Loan Application information

  1.  

Complete the  SBA loan application (SBA Form 5), a 2-page form.

 

In Box 1, check “Economic Injury (EDIL)” as the type of disaster you are applying for. You’ll also have to provide information like organization type, a Federal EIN, contact information, and personal information related to business owners (including their SSN or EIN). 

 

Note: Sole Proprietors should complete SBA Form 5C.

SBA Loan Application Supporting Documentation

 

Economic Injury Disaster Loan Supporting Information (Form P-019), a 1-page form that asks whether the business was in operation one year prior to the disaster; gross revenues and COGS for the 12 month period prior to the disaster; a brief description of compensation from other sources received as a result of the disaster; certification that the size of the applicant business does not exceed the eligible size standard for the industry 

 

Tax Information Authorization (IRS Form 4506T), a 1-page form which gives permission for the IRS to provide SBA your tax return information 

 

Complete copies of the most recent Federal Income Tax Return

 

Schedule of Liabilities (SBA Form 2202), which asks for details on creditors and liabilities (notes, mortgages, and accounts payable)

 

Personal Financial Statement (SBA Form 413), a 3-page form that asks about the personal financial situation for each proprietor, general partner, managing member of an LLC, or each owner of 20% or more of the equity of the business

Additional information requests may include: 

  1.  

Complete copy of the most recent Federal income tax return for principals, general partners or managing members, and affiliates

 

If the most recent Federal income tax return has not been filed, a year-end profit-and-loss statement and balance sheet for that tax year

 

A current year-to-date profit-and-loss statement

 

Additional filing requirements (SBA Form 1368) providing monthly sales figures

We help owners determine if a transition to employee ownership will meet their financial and non-financial goals (such as a target departure date and financial return on the business). We can also help develop a succession plan, preliminary valuation, and financial projections to support the sale.

Child care employees are not expected to personally finance their purchase of the business. Instead, we secure financing from a national network of banks, including financial institutions committed to the development of employee-owned businesses. We also operate two affiliated loan funds: the Local Enterprise Assistance Fund (LEAF) and the Fund for Jobs Worth Owning.

We provide training and personalized support to help employee-owners build the systems, skills, and confidence to successfully own the business. This includes building financial skills, developing a management continuation plan, and developing bylaws for the employee-owned business.

After a business transitions to employee ownership, we provide customized support to members to help them grow their business and build a positive ownership culture. We also connect members to other child care cooperatives to network and build shared knowledge.

What is employee ownership?

 

Employee ownership serves as the foundation of businesses throughout the world, in almost every industry.  Today, more than 18 million workers in the United States have some form of ownership stake in the place they work.  Employee-owned firms differ in that they are owned by a broad group of employees instead of one or two owners or outside shareholders. While management structures are not necessarily different in an employee owned company, participatory practices are more common. This is good for workers and the business. Employee-owned firms are more likely to stay operational and less likely to lay off staff during economic downturns.  Employee owners have 2.5 times greater retirement savings, are paid 5-12% higher wages, and firms adopting Employee Stock Ownership Plans have a 4-5% productivity boost in that first year.

Can employees with limited resources buy a business from its original owners?

 

Many business owners perceive that their employees do not have the money to buy their company from them.  ICA specializes in working with businesses where employees have limited resources.  We help businesses identify the right mix of seller and other financing to allow these transitions to happen, without burdening employees beyond their means.  For more detailed answers on this and other frequently asked questions, please check out this resource.

What do I do if I work at a company where I think the owner might be on the verge of closing, but I am not in management?  Can I do anything?

 

The ICA Group can absolutely work with employees to talk to business owners about exploring the possible options. If you work at a company that you think isn’t going to re-open, please complete the application and just make sure to note that you are not a business owner.

How do I know if employee ownership is right for my business?

 

Transitioning your business to employee ownership can work in any industry, and will look different in each business.  In our practice, the things that drive a successful employee ownership transition is having the right leadership in place (especially if the owner is planning on leaving right away). It is also important to have established business operational systems and healthy cash flow, contracts, or customer base prior to COVID-19.

Do I have to be a retiring business owner?

 

No.  While many of the business owners we work with are interested in employee ownership as a mechanism for selling their business as they retire, the benefits are broadly applicable to other owners as well. Many are interested in this structure because it helps them share the risks and responsibilities with others, unlocks access to new capital, helps them recruit and retain good talent (since profit sharing is offered as an employee benefit), increases resiliency in economic downturns, supports their values, and creates a competitive advantage and differentiator in the market.