Note: The Columbia Montour Chamber, in partnership with the Greater Susquehanna Valley Chamber, the Bucknell SBDC, and PA CareerLink Columbia/Montour Counties, will present a free breakfast seminar on Tuesday, April 30, from 8-9 a.m. about the benefits of and converting to employee ownership.
In August of last year, President Donald Trump signed into law the first major piece of federal legislation to support employee ownership in over 20 years.
The Main Street Act was passed (interestingly) as part of the National Defense Authorization Act. Could it be that employee ownership is a form of financial and economic defense for employees and communities? We’re going to go with “Yes”!
The PaCEO worked closely with Senator Kirsten Gillibrand (D-NY) and her staff, and was a co-sponsor of the bill.
The act directs the U.S. SBA (Small Business Administration) to provide loans and technical support to Employee Stock Ownership Plans (ESOPs) and other forms of employee ownership. It directs the SBA to ease current restrictions that have made SBA loans problematic for employee ownership. Some of the highlights include:
- Allowing for the financing of transaction costs
- Allowing selling shareholders to stay with the company and receive shares
- Removal of cumbersome and restrictive regulations
- Improved ESOP lending
- Assistance to co-ops
- Promotion of ESOPs
Read more about this important piece of legislation and how it is intended to further promote employee ownership of businesses.
Also, here is a link to a column urging the passage of this bill from earlier last year before the legislation was signed into law.