The Empowering Small-business Ownership Participation Act lowers the employee stock ownership requirement for defense contractors participating in a Department of Defense pilot program designed to encourage contracting with employee-owned businesses. Currently, contractors must be wholly owned (100 percent) through an employee stock ownership plan (ESOP) to qualify for the program; this bill reduces that threshold to just 30 percent ownership. The change makes it easier for small businesses with partial employee ownership to compete for federal defense contracts and potentially receive contracting incentives. The bill affects defense contractors and small businesses seeking to participate in the Pentagon's supplier programs, though it does not include specific funding amounts or implementation timelines. By lowering the ownership bar, the legislation aims to expand access to the program and support broader employee participation in business ownership across the defense industrial base.
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