California Employee Ownership Program Not Funded

In 2022, the California Employee Ownership Act became law by a unanimous vote. The bill established the California Employee Ownership Hub within the California Office of Small Business. The Hub was directed to “increase awareness and understanding of employee ownership among stakeholders, assist business owners and employees in navigating available resources, and streamline and reduce barriers to employee ownership.” California has a variety of loan support programs for which companies seeking to convert to employee ownership could potentially qualify.

The original version of the bill included grant funding for up to $50,000 for feasibility assessments and more aggressive outreach efforts. These provisions were dropped out of budget concerns.

While the bill passed in 2022, funding for the bill had to go through a separate appropriation process, as is the case for most laws. Unfortunately, California is facing a budget deficit, and no funds were set aside for the program, throwing the future of the program into serious question.