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Federal Support for Employee Ownership Transitions and Worker Cooperatives

This Act establishes a new federal facility to provide up to $5 billion annually in loan guarantees to specialized investment firms. The goal is to finance transactions that result in employees (through Employee Stock Ownership Plans or worker cooperatives) gaining majority ownership of their companies. This aims to boost worker wealth accumulation and participation in business success while ensuring strong protections during the ownership transition process.
Key points
Employee Ownership Fund: Creates a $5 billion annual loan guarantee facility to finance the sale of businesses to Employee Stock Ownership Plans (ESOPs) or worker cooperatives, ensuring employees gain majority control.
Worker Protection: Mandates the appointment of an independent trustee and a fairness opinion for ESOP transactions to ensure the price and terms are financially fair to the employees' plan.
Prohibition on Personal Financing: Employees are explicitly protected from having to personally finance the ownership transition through wage concessions or rolling over their personal retirement funds.
Fair Sale Proceeds: Requires that if the employee-owned company is later sold, the proceeds from the ESOP shares are distributed fairly among participants, protecting both allocated and unallocated shares.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_1645
Sponsor: Sen. Van Hollen, Chris [D-MD]
Process start date: 2025-05-07
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Summarized by: gemini-flash-latest
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_S_1645.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-05-07.

What are the main provisions?

Key points include:

  • Employee Ownership Fund: Creates a $5 billion annual loan guarantee facility to finance the sale of businesses to Employee Stock Ownership Plans (ESOPs) or worker cooperatives, ensuring employees gain majority control.
  • Worker Protection: Mandates the appointment of an independent trustee and a fairness opinion for ESOP transactions to ensure the price and terms are financially fair to the employees' plan.
  • Prohibition on Personal Financing: Employees are explicitly protected from having to personally finance the ownership transition through wage concessions or rolling over their personal retirement funds.
  • Fair Sale Proceeds: Requires that if the employee-owned company is later sold, the proceeds from the ESOP shares are distributed fairly among participants, protecting both allocated and unallocated shares.
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 Sen. Van Hollen, Chris [D-MD].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-31.

CATEGORIES

Economy Labor Public Investments