Main Street Employee Ownership Act of 2018

Bill: 115-hr-5236
Sponsor: Rep. Velazquez, Nydia M. [D-NY-7]
Introduced: 2018-03-08 in the House
Policy area: Commerce
Subjects: Business education
Business investment and capital
Congressional oversight
Employee benefits and pensions
Government lending and loan guarantees
Government studies and investigations
Minority and disadvantaged businesses
Securities
Small business

Summary:
action_date: 2018-03-08
text: 

Main Street Employee Ownership Act of 2018

 
This bill amends the Small Business Act to expand the authority of the Small Business Administration (SBA) to guarantee loans for qualified employee trusts of a small business to purchase the stock of that business. Specifically, the bill allows the guaranteed loan to also cover transactions costs associated with purchasing the stock. In addition, it allows loans to a small business to be guaranteed if the loan proceeds will: (1) be used to provide loans to a qualified employee trust of the small business to purchase the business's stock; and (2) result in the trust owning at least 51% of the business's stock. The SBA must guarantee loans to cooperatives in which employees are eligible for membership for such stock purchases.
 
The SBA shall establish: (1) an outreach program with licensed small business investment companies to increase investment in transitions to employee-owned businesses, and (2) a Small Business Employee Ownership and Cooperative Promotion Program to offer technical assistance and training on the transition to employee ownership through cooperatives and qualified employee trusts. 
 
The Administrator of the SBA shall coordinate an interagency working group on employee-owned businesses.

action_date: 2018-04-24
text: 

Main Street Employee Ownership Act of 2018

 
This bill amends the Small Business Act to expand the authority of the Small Business Administration (SBA) to guarantee loans for qualified employee trusts of a small business to purchase the stock of that business. Specifically, the bill allows the guaranteed loan to also cover transactions costs associated with purchasing the stock. In addition, it allows loans to a small business to be guaranteed if the loan proceeds will: (1) be used to provide loans to a qualified employee trust of the small business to purchase the business's stock; and (2) result in the trust owning at least 51% of the business's stock. The SBA must guarantee loans to cooperatives in which employees are eligible for membership for such stock purchases.
 
The SBA shall: (1) provide outreach and educational materials to licensed small business investment companies to increase investment in transitions to employee-owned businesses, and (2) establish a Small Business Employee Ownership and Cooperative Promotion Program to offer technical assistance and training on the transition to employee ownership through cooperatives and qualified employee trusts. 
 
The Administrator of the SBA shall coordinate an interagency working group on employee-owned businesses.


Legislative actions:
action_date: 2018-05-09
text: Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
action_date: 2018-05-08
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2018-05-08
text: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text CR H3810-3811)
action_date: 2018-05-08
text: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.(text CR H3810-3811)
action_date: 2018-05-08
text: DEBATE - The House proceeded with forty minutes of debate on H.R. 5236.
action_date: 2018-05-08
text: Considered under suspension of the rules. (consideration: CR H3810-3812)
action_date: 2018-05-08
text: Mr. Chabot moved to suspend the rules and pass the bill, as amended.
action_date: 2018-04-24
text: Placed on the Union Calendar, Calendar No. 494.
action_date: 2018-04-24
text: Reported (Amended) by the Committee on Small Business. H. Rept. 115-645.
action_date: 2018-04-24
text: Reported (Amended) by the Committee on Small Business. H. Rept. 115-645.
action_date: 2018-03-14
text: Ordered to be Reported (Amended) by Voice Vote.
action_date: 2018-03-14
text: Committee Consideration and Mark-up Session Held.
action_date: 2018-03-08
text: Referred to the House Committee on Small Business.
action_date: 2018-03-08
text: Introduced in House
action_date: 2018-03-08
text: Introduced in House