The following information was sent by email to all ESOP Association members on July 1, 2010.
Senators Bernard Sanders (I-VT), Patrick Leahy (D-VT), and Sherrod Brown (D-OH) have filed pro-employee amendments to H.R. 5297, the Small Business Lending Act. One amendment would establish an initiative to promote employee ownership at the Department of Labor; the other amendment would establish a loan guarantee program at the Department of Treasury to help finance certain ESOP transactions. To read the amendments, please click on the following amendment numbers: S. AMDT 4439 and S. AMDT 4440.
Below the text of this email, please find talking points supporting the argument for the bill.
Please consider calling, faxing, or emailing your two Senators requesting they support and vote for the Sanders-Leahy-Brown amendments S. AMDT 4439 and S. AMDT 4440 to H.R. 5297. Ask your message be given to the staff aide to the Senator who handles tax and/or small business issues. Just the simple request is enough to register a pro-ESOP position, and dialogue with the aide is not necessary unless the person described calls back. In any detailed conversation you can refer the staffer to personnel at The ESOP Association or to Warren Gunnels who works for Senator Sanders who drafted these proposals. Again, following is a general argument for the proposals.
H.R. 5297 will be considered by the full Senate sometime after July 13th.
Thank you,
The ESOP Association
SUPPORT EMPLOYEE OWNERSHIP AND PARTICIPATION AMENDMENTS TO SAVE JOBS AND SUPPORT WORKERS
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During the consideration of the Small Business Lending Act, Senators Sanders, Sherrod Brown, and Leahy will file two amendments aimed at increasing jobs through an expansion in employee ownership.
The first amendment (S.AMDT 4439), the Worker Ownership, Readiness and Knowledge (WORK) Act, would create an Employee Ownership and Participation Initiative within the Department of Labor. This initiative would promote employee ownership and employee participation in company decision making by providing education and outreach, training, grants, and technical support for local programs dedicated to the promotion of employee ownership and participation.
The second amendment (S.AMDT 4440) would create the U.S. Employee Ownership Bank to provide loans and loan guarantees to employees to purchase a business through an ESOP or a worker owned cooperative. The federal government currently provides a wide variety of federal loans, loan guarantees and other technical assistance to American companies as a way to increase U.S. jobs through exports. Providing federal loans and loan guarantees for the expansion of employee ownership would increase and retain jobs in the U.S. and strengthen the U.S. economy.
Since December 2007, employment has fallen by over 7 million, and the unemployment rate has nearly doubled to 9.7%. Although many jobs have been lost to deteriorating domestic economic conditions, many others have been shipped offshore. One way to reverse these economic trends is to provide employees with the tools they need to own their own businesses through employee stock ownership plans (ESOPs) or eligible worker owned cooperatives. Employee ownership is often the necessary component that will keep a hard-pressed business from either shutting down, or shipping its jobs overseas.
Who benefits from these employee ownership amendments?
* The Economy, in which many businesses which otherwise would close down or ship jobs overseas stay open and keep their American employees
* Retiring Small Business Owners, who find buyers for their business and compensation for their years of hard work;
* Employees, who retain their jobs, share in future profits, and have greater control over their own vocation;
* Company Performance, which often is improved through increases in productivity due to employee ownership and participation; and
* The Community, in which the company is now more deeply rooted.
By expanding employee ownership and participation, these amendments would create stronger American companies, prevent job loss, and improve working conditions for struggling employees.