The Employee Ownership Financing Act establishes a new Office of Employee Ownership within the Department of Labor and creates a loan program providing up to $500 million in loans and loan guarantees to help employee stock ownership plans (ESOPs) and worker-owned cooperatives purchase company equity and achieve at least 51% employee ownership. Loans can be repaid over up to 15 years at competitive rates, with repayments funding future loans through a dedicated Treasury account. The bill also creates an advisory council of seven members representing employees, companies, ESOP providers, and cooperatives to guide program implementation. Congress authorizes $500 million for fiscal year 2026 to fund the loans and guarantees, plus an additional $5 million for startup costs, with authorization for further appropriations in subsequent years.
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