ESOP Legislation Introduced

Senator Bernie Sanders (I-VT) and several Democrat sponsors have introduced S. 2458, the Employee Ownership Financing Act. According to a press release, the bill proposes the following.

• Establish a $500 million loan fund to help workers purchase companies through ESOPs or worker cooperatives that are more than 51% employee-owned.
• Create a new Office of Employee Ownership at the Department of Labor to administer the loan program and expand education about worker ownership nationwide.
• Amend the WARN Act to give employees the right of first refusal to buy closing business facilities, preventing mass layoffs and keeping jobs in local communities.
• Establish an Employee Ownership Advisory Council to support implementation and oversight.
• Ensure workplace democracy, diversified retirement investment options, fair company valuations, and independence from private equity ownership for all loan recipients.