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Easier Employee Ownership and Cooperative Business Loans

New rules make it easier for employees to take over and run businesses as cooperatives. These changes aim to support the growth of such enterprises by removing barriers to obtaining loans and accessing disaster assistance. This could lead to more employee-owned businesses, potentially impacting job stability and local economies.
Key points
Easier Loans: Employee-owned businesses and cooperatives will face fewer requirements for loan guarantees and certain certifications.
Disaster Aid Access: Cooperatives will now have the same access to disaster assistance programs as other small businesses.
Seller Involvement: Previous owners can remain involved in the business after employee takeover, ensuring a smoother transition.
Streamlined Loan Process: Banks can process loan applications for these businesses more quickly, speeding up access to funding.
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Additional Information
Print number: 118_HR_10242
Sponsor: Rep. Velázquez, Nydia M. [D-NY-7]
Process start date: 2024-11-21
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Main Street Employee Ownership 2.0 Act of 2024

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_10242.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-11-21.

What are the main provisions?

Key points include:

  • Easier Loans: Employee-owned businesses and cooperatives will face fewer requirements for loan guarantees and certain certifications.
  • Disaster Aid Access: Cooperatives will now have the same access to disaster assistance programs as other small businesses.
  • Seller Involvement: Previous owners can remain involved in the business after employee takeover, ensuring a smoother transition.
  • Streamlined Loan Process: Banks can process loan applications for these businesses more quickly, speeding up access to funding.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Velázquez, Nydia M. [D-NY-7].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Small Business.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-24.

CATEGORIES

Economy Labor