Gateway Cities Legacy Business Program
Are you a business owner weighing retirement or exiting your business? Could you see your employees taking over but don't know how it would work?
An employee ownership transition could help you retire on your own terms and leave a lasting legacy by turning your business into a worker cooperative or an ESOP.
In partnership with the Massachusetts Growth Capital Corporation, the ICA Group, and the Fund for Jobs Worth Owning, Massachusetts business owners can receive no-cost technical assistance and financing to transition to employee ownership. This includes:
- No-cost succession planning services and employee ownership feasibility consulting ($5000 value, available statewide)
- No-cost technical assistance to convert the business to an employee-owned model and complete the sale ($25,000 value, Gateway City businesses only)
- Access to financing that is not dependent upon the personal resources of your employees to purchase the business
Eligibility:
- Business must have between 5-20 Employees, excluding the founding owner.
- Business must be located in one of 26 designated Gateway Cities in Massachusetts: Attleboro, Barnstable, Brockton, Chelsea, Chicopee, Everett,
- Fall River, Fitchburg, Haverhill, Holyoke, Lawrence, Leominster, Lowell, Lynn, Malden, Methuen, New Bedford, Peabody, Pittsfield, Quincy, Revere, Salem, Springfield, Taunton, Westfield, and Worcester. (See this list)
- Business must show a history of profitability in the last three years.
- A desire to sell the business to employees within the next 1-2 years, and commit to doing so within the next six months.
- Priority given to businesses with 40% or more BIPOC representation (black, indigenous, people of color).
Please complete it to the best of your ability. Accepted applications will receive no-cost succession planning, technical assistance, and access to financing to complete a business sale and transition to a worker-owned cooperative. We'll let you know within three business days whether you've advanced in the application process and schedule an interview.
**If you meet most of these criteria but are not located in a Gateway City or have a larger company size, MassCEO can still provide subsidized services to explore transitioning to employee ownership. Fill out this form here or contact sprophet@icagroup.org for more information.
Application and Service Process
The GC Legacy Business Program is broken down into two phases: feasibility and execution. We begin with a deep business analysis and education process to determine if a worker cooperative could be a viable transfer option for your business.
Phase 1: Assess the feasibility of an employee ownership transition
- Complete [Application], you’ll receive a response within 5 business days with a decision about moving forward in the process.
- Complete a 30 minute informational interview and submit intake worksheets
- Have first consultation with MassCEO consultants and exchange business financial information
- Receive your Employee Ownership Goalsetting Report
- Second Consultation with MassCEO consultants, concentrating on business operations and finances.
- Receive final Feasibility Report (includes estimate of business value) and debrief with MassCEO team. If a transition to a worker cooperative is found to be feasible, the business is eligible for Part 2 of services to complete the transition.
Timeline of services: 2-3 months
Phase 2: Become Employee-Owned!
- Finalize the business value estimate and projections for formal offer to employees. Form a steering committee of future employee-owners
- Work with relevant legal and financial professionals to structure the transaction
- Secure financing and work through due diligence with lenders, with help from MassCEO
- Complete the transaction and exit your business knowing that it is in good hands
Timeline of services: Six months to one year (as typical with any type of business transfer).
Additional Resources
Sign Up For Our Newsletter
