H.R. 5778: Improving SBA Engagement on Employee Ownership Act

This bill, known as the Improving SBA Engagement on Employee Ownership Act, aims to enhance the outreach and education efforts of the Small Business Administration (SBA) regarding employee ownership structures, such as cooperatives. Here are the key aspects of what the bill would do:

1. Involvement in Working Groups

The SBA Administrator or a designated representative is mandated to participate in various working groups and meetings that focus on cooperatives and employee ownership of businesses. This includes:

• Meetings hosted by other federal agencies where the Administrator is invited.
• Engagements with agencies the Administrator has previously interacted with.

2. Enhanced Investment Company Program Outreach

The bill seeks to amend the existing small business investment company program provisions to broaden its outreach. Specifically, it will include communication efforts directed not only towards business owners but also to the investors and limited partners involved with such companies. This adjustment is intended to promote greater understanding and support for the Small Business Employee Ownership and Cooperatives Promotion Program.

3. Required Outreach and Assistance

Within six months of the bill's enactment, the SBA Administrator must implement the outreach and assistance requirements as specified in previous legislation from 2019 related to employee ownership and cooperatives. These efforts are designed to improve both awareness and support for small businesses that operate under these ownership models.

4. Focus on Education

The overall purpose of the bill is to foster greater knowledge about employee ownership as a viable business structure among small businesses, investment companies, and the broader community. This may involve workshops, informational sessions, and resources aimed at educating stakeholders about the benefits and responsibilities associated with employee ownership.

Relevant Companies

• None found