The bill would create an Office of Employee Ownership in the Department of Labor and a program offering loans or loan guarantees to employee stock ownership plans and worker-owned cooperatives. The loans could support purchases that make a company at least 51 percent employee-owned, increase employee ownership, or help an employee-owned company expand or preserve jobs. Applicants would need to meet business, governance, and financial requirements. The bill would also give workers affected by a permanent plant closing an offer to buy the plant, facility, or company through an employee stock ownership plan or worker-owned cooperative. It would create an advisory council on employee ownership.
If your employer orders a permanent shutdown of an entire facility, the bill would require the shutdown notice to include an offer for affected employees to buy the facility or company through an eligible employee ownership arrangement. If employees and the employer begin good-faith purchase negotiations within 60 days, the facility must remain open during negotiations and for at least 30 days after the purchase closing date. Businesses seeking program loans would have to satisfy requirements related to employee ownership, worker participation, and ability to repay.
The bill would authorize $500 million for the loan program for fiscal year 2026, available until spent, and $5 million for program setup costs through September 30, 2026. It would authorize additional administrative funding as needed in fiscal year 2027 and later years. The total principal of outstanding program loans and guarantees could not exceed $500 million at one time.
No publicly available information.
No publicly available information.