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Pro-ESOP Bill Passed By Congress and Signed Into Law

by The ESOP Association | Aug 14, 2018
The Main Street Employee Ownership Act has been signed into law by President Trump. This marks a major victory for the ESOP community.
 
The Main Street Employee Ownership Act, which passed the House in May, has now passed the Senate as well. The bill was inserted into H.R. 5515 — a measure that authorizes defense spending for 2019 — and was signed by the President.

The Main Street Employee Ownership Act was introduced by new ESOP Advocate Rep. Nydia Velazquez (D-NY) in March. As reported in our May ESOP Report cover story, the bill enjoyed bi-partisan support and passed in the House by a voice vote on May 8. 

The bill is designed to makes it easier for small companies to make use of the Small Business Administration’s 7(a) program to finance their transition to become employee-owned businesses, such as ESOPs. 

In announcing the passage of the legislation, Rep. Velazquez’s website stated that ESOPs “have a proven track record of success, with companies that transition to the employee-ownership model seeing an increase in productivity by 4 to 5 percent.”

Rep. Velazquez was quoted on the page as saying: “We know that workers at employee-owned enterprises tend to be paid better and achieve higher rates of financial security. I am proud to have partnered with Senator Gillibrand to advance this important legislation.”  

For additional information, see The ESOP Association's press release

To learn more about ESOP Advocacy and the Congressional support ESOPs garner visit the Advocacy Page of our website.