Friday, May 9, 2008

Indiana Business News: State Funds for ESOPs

The Indianapolis Star reports on a new sate program which should encourage employee stock ownership programs here.

Indiana State Treasurer Richard Mourdock on Tuesday announced a $50 million program to help workers set up employee stock ownership programs.


Under the state plan, workers can get loans from participating banks to set up ESOPs. The state doesn't guarantee the loans, but encourages banks to participate by buying certificates of deposit at reduced interest rates. In turn, the banks provide loans at reduced rates to Indiana businesses that are setting up ESOP programs.

The initial rates that financial institutions will be charging Indiana businesses through the program will be 4.25 percent.