I 
117TH CONGRESS 
2D SESSION 
H. R. 9347 
To amend the Small Business Act to modify requirements relating to certain 
employee-owned businesses, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 17, 2022 
Ms. VELA´ZQUEZ (for herself and Mr. PHILLIPS) introduced the following bill; 
which was referred to the Committee on Small Business 
A BILL 
To amend the Small Business Act to modify requirements 
relating to certain employee-owned businesses, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Main Street Employee 
Ownership 2.0 Act of 2022’’. 
SEC. 2. PROHIBITION OF SELLER GUARANTEES. 
Section 7(a)(15)(B)(iv) of the Small Business Act 
(15 U.S.C. 636 (a)(15)(B)(iv)) is amended to read as fol-
lows: 
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‘‘(iv) with respect to a loan made to a trust 
or to a cooperative in accordance with para-
graph (35), a seller of the small business con-
cern may remain involved as an officer, direc-
tor, or key employee of the small business con-
cern after a qualified employee trust or cooper-
ative has acquired 100 percent of ownership of 
the small business concern.’’. 
SEC. 3. PROHIBITION OF CERTAIN REQUIREMENTS RELAT-
ING TO LENDING TO QUALIFIED EMPLOYEE 
TRUSTS AND COOPERATIVES. 
Section 7(a)(15)(G) of the Small Business Act (15 
U.S.C. 636 (a)(15)(G)) is amended to read as follows: 
‘‘(G) With respect to a loan made to a qualified 
employee trust under this paragraph or to a cooper-
ative in accordance with paragraph (35), the Admin-
istrator— 
‘‘(i) may not require the qualified employee 
trust or cooperative to provide any mandatory 
equity to make the loan; 
‘‘(ii) may not require the qualified em-
ployee trust or cooperative to obtain from the 
Secretary of the Treasury a determination let-
ter with respect to its status as a qualified em-
ployee trust or cooperative (as applicable); 
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‘‘(iii) shall allow the qualified employee 
trust or cooperative to submit an opinion letter 
with respect to its status as a qualified em-
ployee trust or cooperative (as applicable); and 
‘‘(iv) may not require the qualified em-
ployee trust or cooperative to obtain or submit 
an additional valuation of the qualified em-
ployee trust or cooperative (as applicable) if the 
qualified employee trust or cooperative has al-
ready obtained a valuation from a third party 
pursuant to any Federal law.’’. 
SEC. 4. PROHIBITION OF PERSONAL OR ENTITY GUAR-
ANTEE REQUIREMENT. 
Section 7(a)(35) of the Small Business Act (15 
U.S.C. 636(a)(35)) is amended by striking subparagraph 
(B) and replacing it with the following: 
‘‘(B) AUTHORITY.— 
‘‘(i) IN GENERAL.—The Administrator 
shall guarantee loans made to a coopera-
tive for the purpose described in paragraph 
(15). 
‘‘(ii) PROHIBITION ON PERSONAL OR 
ENTITY
GUARANTEE.—The Administrator 
shall not require a cooperative to provide a 
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personal guarantee or an entity guarantee 
for a loan under this subsection.’’. 
SEC. 5. DELEGATED AUTHORITY FOR 7(a) PREFERRED 
LENDERS PROGRAM LOANS TO QUALIFIED 
EMPLOYEE TRUSTS AND COOPERATIVES. 
Section 5(b)(7) of the Small Business Act (15 U.S.C. 
634(b)(7)) is amended by striking the period after ‘‘liq-
uidation’’ and inserting the following: ‘‘: Provided further, 
that the Administrator shall permit deferred participation 
loans (including those made by lenders participating in the 
program defined in section 7(a)(3)(iii)) guaranteed under 
paragraph (15) or (35) of section 7(a) to be processed 
under the lender’s delegated authority to make and close 
loans under this subsection;’’. 
SEC. 6. COOPERATIVE ELIGIBILITY FOR DISASTER ASSIST-
ANCE PROGRAM. 
Section 7(b) (15 U.S.C. 636(b)) is amended— 
(1) in paragraph (1)(A), by inserting ‘‘, includ-
ing to cooperatives as defined in subsection 
(a)(35)(A),’’ after ‘‘basis)’’; 
(2) in paragraph (1)(B), by inserting ‘‘(includ-
ing 
a 
cooperative 
as 
defined 
in 
subsection 
(a)(35)(A))’’ after ‘‘business concern’’; and 
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(3) in paragraph (2), by inserting after ‘‘small 
business concern’’ the following: ‘‘(including a coop-
erative as defined in subsection (a)(35)(A))’’. 
Æ 
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