The 2018 Appropriations Bill Includes Employee Ownership Language
Executive Director
As we reported on social media and on our employee ownership and current events page, the omnibus appropriations bill for fiscal year 2018, released on March 21, includes language directing the Small Business Administration to increase its efforts to encourage employee ownership. The bill is the result of bipartisan negotiations among leaders from both parties and both chambers of Congress, and President Trump signed it into law on March 23.
The text included in the bill reads:
Employee-Ownership.—It is noted that worker owned businesses are uniquely structured to provide wide-ranging economic benefits. In order to encourage new and assist existing employee owned businesses, SBA is directed to provide education and outreach to businesses, employees, and financial institutions about employee-ownership. This effort should include information about the different business structures available, such as cooperatives, Employee Stock Ownership Plans, and technical assistance to assist employee efforts to become businesses. Further, SBA is directed to develop guidance on employee-ownership to approved lenders and assist in accessing financing through the 7(a)(15) loan guarantee program.
The full bill is available at this link, and the paragraph on employee ownership is on page 88.