Bipartisan, bicameral legislation introduced in support of expanding employee ownership financing

CAMBRIDGE, Mass., May 17, 2023 /PRNewswire/ -- Ownership America applauds the bipartisan, bicameral introduction of the Employee Equity Investment Act (EEIA), which is expected to significantly accelerate the growth of employee ownership over the next two decades. The EEIA would create an investment facility within the existing SBA Small Business Investment Company (SBIC) program designed to mobilize private investment towards creating, growing, and sustaining employee-owned businesses. The program would operate at no subsidy cost to the taxpayer and would also remove contracting barriers for employee-owned businesses.

Nearly half of all private businesses are owned by individuals who are at or near retirement age, employing over 32 million workers and representing 2.9 million firms. More than half of these small business owners are expected to retire over the next decade–a "silver tsunami" of business succession that risks the loss of local jobs and business investment. The EEIA would enable business owners to more quickly and efficiently sell to their employees through an Employee Stock Ownership Plan (ESOP) or worker cooperative. Research shows that employee-owned businesses outperform their competitors, create and retain high-quality jobs that build over twice the levels of retirement wealth for workers compared to conventional businesses, and lay off fewer workers during...

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