Glossary
EPC / OC
eligible passive company and operating company
said: ee-pee-see, oh-see
A structure where one entity holds the real estate and leases it to the entity that runs the business.
Why it matters to you
Very common when buying a business with its building. Both entities are on the loan and both guarantee it. If your attorney suggests holding property in a separate LLC, this is the SBA-compatible way to do it.