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Bill115th CongressFiled Mar 8, 2018Commerce
H.R. 5236

Main Street Employee Ownership Act of 2018

Bill journey · stage 2 of 5

Under committee review

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What it doesSummary reported to house with amendment(s) (Apr 24, 2018)

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.

What just happenedMay 9, 2018

Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.

Who’s behind it

Rep. Velazquez, Nydia M. [D-NY-7](D-NY)Sponsor
Read on Congress.gov
2committees15actions3related bills9subjects
  1. May 9, 2018IntroReferral

    Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.

    Small Business and Entrepreneurship Committee
  2. May 8, 2018FloorH38310

    Motion to reconsider laid on the table Agreed to without objection.

  3. May 8, 2018FloorH37300

    On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text CR H3810-3811)

  4. May 8, 2018Floor8000

    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)

  5. May 8, 2018FloorH8D000

    DEBATE - The House proceeded with forty minutes of debate on H.R. 5236.

  6. May 8, 2018FloorH30000

    Considered under suspension of the rules. (consideration: CR H3810-3812)

  7. May 8, 2018FloorH30300

    Mr. Chabot moved to suspend the rules and pass the bill, as amended.

  8. Apr 24, 2018CalendarsH12410

    Placed on the Union Calendar, Calendar No. 494.

  9. Apr 24, 2018CommitteeH12200

    Reported (Amended) by the Committee on Small Business. H. Rept. 115-645.

    Small Business Committee
  10. Apr 24, 2018Committee5000

    Reported (Amended) by the Committee on Small Business. H. Rept. 115-645.

    Small Business Committee
  11. Mar 14, 2018Committee

    Ordered to be Reported (Amended) by Voice Vote.

    Small Business Committee
  12. Mar 14, 2018Committee

    Committee Consideration and Mark-up Session Held.

    Small Business Committee
  13. Mar 8, 2018IntroReferralH11100

    Referred to the House Committee on Small Business.

    Small Business Committee
  14. Mar 8, 2018IntroReferralIntro-H

    Introduced in House

  15. Mar 8, 2018IntroReferral1000

    Introduced in House

Reported to House with amendment(s)Apr 24, 201817

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.

Introduced in HouseMar 8, 2018

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.

Main Street Employee Ownership Act of 2018 — Informed