Bill Introduced to Help Small Businesses Offer ESOPs

Senator Kirsten Gillibrand (D-New York) has introduced S. 2786, the Main Street Employee Ownership Act of 2018.

The preamble says it is a bill “To expand opportunities to available employee-owned business concerns through Small Business Administration loan programs, and for other purposes.” The bill would amend Section 7(a) of the Small Business Act, expanding loans to small business employers for the purpose of transferring ownership of the company to employees.

It would provide $500 million in support of employee stock ownership plan (ESOP) programs and would operate through the Small Business Administration.

The ESOP Association praised Gillibrand for introducing the bill. According to the Association, she toured three employee-owned companies that are ESOP Association corporate members and said, “Employee-owned businesses have a strong track record of better pay and retirement benefits for workers and a commitment to creating local jobs. I will continue to fight as hard as I can in the Senate to pass my bipartisan legislation that rewards work and supports employee ownership around New York and the country.”