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Federal Support for Transitioning Businesses to Employee Ownership (ESOP/EWOC)

This Act establishes a new federal loan guarantee facility (up to $5 billion annually) within the Department of Commerce to encourage businesses to transition into employee-owned structures (ESOPs or worker cooperatives). The goal is to increase the number of companies where employees hold a majority ownership interest, while ensuring strong protections for employee financial interests during these transactions. The program aims to enhance employee financial stability and the resilience of American businesses.
Key points
The US government provides financial guarantees to help investment firms finance the sale of businesses to Employee Stock Ownership Plans (ESOPs) or worker cooperatives.
Employee acquisition transactions must be overseen by independent trustees and advisors to ensure the financial terms are fair to the employee plan.
Employees are prohibited from personally financing the acquisition through wage cuts or rolling over their personal retirement plans.
In the event the company is later sold, ESOP participants are guaranteed a fair distribution of sale proceeds based on their compensation.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_3248
Sponsor: Rep. Moore, Blake D. [R-UT-1]
Process start date: 2025-05-07
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

American Ownership and Resilience Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_3248.

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 2025-05-07.

What are the main provisions?

Key points include:

  • The US government provides financial guarantees to help investment firms finance the sale of businesses to Employee Stock Ownership Plans (ESOPs) or worker cooperatives.
  • Employee acquisition transactions must be overseen by independent trustees and advisors to ensure the financial terms are fair to the employee plan.
  • Employees are prohibited from personally financing the acquisition through wage cuts or rolling over their personal retirement plans.
  • In the event the company is later sold, ESOP participants are guaranteed a fair distribution of sale proceeds based on their compensation.
What is the specific legal status?

The current status is Introduced.

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. Moore, Blake D. [R-UT-1].

What is the latest detailed status?

The latest detailed status is: Introduced in House

Is this summary verified?

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

CATEGORIES

Economy Public Investments Labor