# Summary
The Employee Equity Investment Act of 2023 creates a new program within the Small Business Administration to help workers buy ownership stakes in their companies through employee stock ownership plans (ESOPs) and worker-owned cooperatives. The bill establishes an "Employee Equity Investment Facility" that will provide up to $5 billion annually in federal financing to investment companies that focus on facilitating these employee ownership transitions, with a limit of 20 percent of that amount available to non-specialized firms. The legislation includes strong protections for workers, requiring independent trustees and financial advisors to evaluate whether ownership deals are fair, and prohibiting employees from using their own wages to finance the purchase. To encourage experienced investors to participate, the bill allows established investment managers to mentor newer firms and receive increased borrowing capacity. The program includes a 20-year timeline before new participants can no longer enter, though existing participants may continue operating. Additionally, the bill addresses federal contracting rules to ensure that employee-owned businesses can maintain eligibility for set-aside contracts reserved for disadvantaged, women-owned, and veteran-owned businesses for two years after the ownership transition occurs.
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