Restricted Stock Loans

If you're an executive, director, early investor, or insider with restricted stock, traditional financing options are limited. Brokers won't offer margin loans against shares you can't sell. We specialize in restricted stock loans—providing liquidity when others can't.

What is Restricted Stock?

Restricted stock refers to shares that have limitations on transfer or sale:

Rule 144 Stock

Securities acquired in private transactions or from company insiders, subject to holding periods and volume limitations.

Lock-Up Shares

Shares subject to a lock-up agreement (common after IPOs), typically 90-180 days where you cannot sell.

Vested RSUs

Restricted Stock Units that have vested but are still subject to trading restrictions.

Insider Holdings

Shares held by officers, directors, or 10%+ owners subject to Section 16 reporting and insider trading policies.

Feature	Standard Stock Loan	Restricted Stock Loan
LTV Range	40-60%	25-40%
Evaluation	Trading volume, volatility	Plus: restriction type, expiration, issuer quality
Compliance	Standard	Enhanced (Rule 144, Section 16, lock-up review)
Loan Term	Flexible	May align with restriction expiration
Documentation	Standard loan docs	Additional compliance documents

IPO Insiders

Executives and early investors locked up after an IPO who need liquidity before the lock-up expires.

Rule 144 Shareholders

Investors who acquired shares in private transactions, with holding periods met but volume limitations restricting selling.

Officers & Directors

Company insiders with significant net worth tied up in company stock, facing trading windows and blackout periods.

Employees with Vested RSUs

Employees whose RSUs have vested but trading is still restricted, needing liquidity or diversification.

Rule 144 Compliance

We ensure loans comply with holding period requirements, volume limitations, and filing requirements (Form 144).

Section 16 Reporting

For officers, directors, and 10%+ owners, we understand that loans may be reportable on Form 4 and work with your team.

Lock-Up Review

We review your lock-up agreement to determine if loans are permitted and structure terms around expiration dates.

Company Policies

We coordinate with your legal/compliance team to ensure the loan complies with insider trading policies. See our guide, Restricted Stock Loans: What Insiders Need to Know.

What to Expect on Loan-to-Value for Restricted Stock

Restricted stock loans are evaluated differently than standard stock loans, and LTV ranges reflect that. While a freely tradeable microcap position might qualify for 40–50% LTV, restricted stock typically falls in the 25–40% range depending on several factors.

The key variables that affect your LTV on restricted stock:

Restriction type and expiration

A lock-up expiring in 60 days is evaluated differently than a Rule 144 position with a 12-month holding period requirement still in progress. Shorter remaining restrictions generally support a better LTV.

Issuer quality and market tier

OTCQX and OTCQB issuers with current disclosure are evaluated more favorably than Pink Sheet issuers with limited public information. Exchange-listed restricted stock (Nasdaq, NYSE) typically supports a higher LTV.

Average daily trading volume

The underlying liquidity of the stock affects how we assess the collateral. A thinly traded OTC name requires a more conservative LTV than the same share type on a more active issuer.

Position size relative to float

A large block relative to the company's float requires more conservative underwriting. We look at your position size in the context of the overall trading picture.

The best way to get a precise indication is to submit your information through the calculator or contact form. We can typically provide indicative terms within 24 hours for most restricted stock situations.

How the Process Works for Restricted Stock

The restricted stock loan process follows the same general steps as a standard stock loan, with additional diligence on the compliance side. Here is what to expect:

1

Initial inquiry

Submit your ticker, share count, restriction type, and expiration timeline. We review and respond with preliminary terms within 24 hours.

2

Compliance review

We review the restriction details — Rule 144 eligibility, lock-up agreement terms, insider status, and any applicable company policies. We work directly with your legal or compliance team where needed.

3

Term sheet

You receive a formal term sheet with LTV, interest rate, loan amount, and term. No obligation to proceed.

4

Documentation and transfer

Loan documents are executed and shares are transferred. For restricted stock, this may include additional transfer agent coordination and compliance documentation.

5

Funding

Proceeds are wired to your account. Restricted stock transactions typically close in 10–14 business days due to the additional compliance steps.

For more detail on the overall loan process, see our stock loan process page. For specific questions about your restricted stock situation, contact us directly.

Situation

A CFO at a recently-public company has $3 million in shares subject to a 180-day lock-up. She needs $800,000 for a real estate purchase. Selling is not an option until the lock-up expires in4 months.

Solution

SLS Group structured a $900,000 loan (30% LTV) against the restricted shares with a 12-month term. The loan was permissible under the lock-up agreement and properly disclosed.

Outcome

• CFO accessed needed liquidity
• Loan term extended beyond lock-up expiration
• Shares appreciated 15% during the loan term
• CFO repaid the loan and retained all appreciation