cooperative that are at least 51 percent employee 
owned. 
(2) Grants to States and nonprofit and coopera-
tive organizations with experience in developing em-
ployee-owned businesses and worker-owned coopera-
tives to provide education and outreach to inform 
people about the possibilities and benefits of em-
ployee ownership of companies, gain sharing, and 
participation in company decision-making, including 
some financial education. 
(3) Grants to States and nonprofit and coopera-
tive organizations with experience in developing em-
ployee-owned businesses and worker-owned coopera-
tives to provide technical assistance to assist em-
ployee efforts to become business owners. 
(4) Grants to States and nonprofit and coopera-
tive organizations with experience in developing em-
ployee-owned businesses and worker-owned coopera-
tives to provide participation training to teach em-
ployees and employers methods of employee partici-
pation in company decision-making. 
(5) Grants to States and nonprofit and coopera-
tive organizations with experience in developing em-
ployee-owned businesses and worker-owned coopera-
tives to conduct objective third party pre-feasibility
and feasibility studies to determine if employees who 
would like to start-up employee stock ownership 
plans or worker cooperatives would be able to make 
a profit. 
(c) PRECONDITIONS.—Before the Bank makes any 
subordinated loan or loan guarantee under subsection 
(b)(1), the employees shall submit to the Bank the fol-
lowing: 
(1) A business plan that shows that—
(A) at least 51 percent of all interests in 
the employee stock ownership plan or eligible 
worker-owned cooperative is owned or controlled 
by employees; 
(B) the Board of Directors of the employee 
stock ownership plan or eligible worker-owned 
cooperative is elected by all of the employees; 
and 
(C) all employees receive basic information 
about company progress and have the oppor-
tunity to participate in day-to-day operations. 
(2) A feasibility study from an objective third 
party with a positive determination that the em-
ployee stock ownership plan or eligible worker owned 
cooperative will be profitable enough to pay back any 
loan, subordinated loan or loan guarantee that was
made possible through the United States Employee 
Ownership Bank. 
(d) INSURANCE
OF SUBORDINATED LOANS
AND 
LOAN GUARANTEES.—
(1) IN GENERAL.—The Bank shall, with respect 
to any subordinated loan or loan guarantee provided 
under this Act, insure such loan or loan guarantee 
against the nonrepayment of the outstanding bal-
ance of the loan. 
(2) ANNUAL PREMIUMS.—The Bank shall fix 
the annual premium for the insurance of each subor-
dinated loan or loan guarantee under this subsection 
to be paid by the borrower in such manner and in 
such amount as the Secretary determines to be ap-
propriate. 
(3) PREMIUMS AND GUARANTEE FEES AVAIL-
ABLE TO COVER LOSSES.—The premiums collected 
by the Bank from insurance issued under this sub-
section and the fees collected by the Bank for loan 
guarantees issued under subsection (b) shall be de-
posited in a fund in the Treasury and shall be avail-
able to the Bank to cover any losses incurred by the 
Bank in connection with any such loan or loan guar-
antee.
(e) TECHNICAL ASSISTANCE IN THE DISCRETION OF 
THE SECRETARY.—In the case of activities under sub-
section (b)(3), the Secretary may require the Bank to take 
the following actions: 
(1) Provide for the targeting of key groups such 
as retiring business owners, unions, managers, trade 
associations, and community organizations. 
(2) Encourage cooperation in organizing work-
shops and conferences. 
(3) Provide for the preparation and distribution 
of materials concerning employee ownership and par-
ticipation. 
(f) PARTICIPATION TRAINING IN THE DISCRETION 
OF THE SECRETARY.—In the case of activities under sub-
section (b)(4), the Secretary may require the Bank to take 
the following actions: 
(1) Provide for courses on employee participa-
tion. 
(2) Provide for the development and fostering 
of networks of employee owned companies to spread 
the use of successful participation techniques.
SEC. 4. REGULATIONS TO ENSURE THE SAFETY AND 
SOUNDNESS OF THE UNITED STATES EM-
PLOYEE OWNERSHIP BANK. 
Before the end of the 30-day period beginning the 
date of the enactment of this Act, the Secretary of the 
Treasury shall prescribe regulations to ensure the safety 
and soundness of the United States Employee Ownership 
Bank. 
SEC. 5. REGULATIONS TO ENSURE THE UNITED STATES EM-
PLOYEE OWNERSHIP BANK WILL NOT COM-
PETE WITH COMMERCIAL FINANCIAL INSTI-
TUTIONS. 
Before the end of the 30-day period beginning the 
date of the enactment of this Act, the Secretary of the 
Treasury shall prescribe regulations to ensure that the 
United States Employee Ownership Bank will not compete 
with commercial financial institutions. 
SEC. 6. COMMUNITY REINVESTMENT CREDIT. 
Section 804 of the Community Reinvestment Act of 
1977 (12 U.S.C. 2903) is amended by adding at the end 
the following new subsection: 
‘‘(d) ESTABLISHMENT OF ESOPS AND EWOCS.—In 
assessing and taking into account, under subsection (a), 
the record of a financial institution, the appropriate Fed-
eral financial supervisory agency may consider as a factor 
capital investments, loans, loan participation, technical as-
sistance, financial advice, grants, and other ventures un-
dertaken by the institution to support or enable manufac-
turing employees to establish employee stock ownership 
plans or eligible worker owned cooperatives that are at 
least 51 percent employee-owned plans or cooperatives.’’. 
SEC. 7. ORGANIZATION OF BANK. 
(a) MANAGEMENT.—There shall be at the head of the 
Bank, a Director of the United States Employee Owner-
ship Bank (hereinafter in this Act referred to as the ‘‘Di-
rector’’), who shall be appointed by and serve at the pleas-
ure of the Secretary. 
(b) STAFF.—The Director may select, appoint, em-
ploy, and fix the compensation of such employees as shall 
be necessary to carry out the functions of the Bank. 
SEC. 8. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to the Sec-
retary of the Treasury $100,000,000 for each of fiscal 
years 2004, 2005, 2006, 2007, and 2008 to carry out the 
purposes of this Act.
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