H.R. 5958: National Worker Cooperative Development and Support Act

This bill, titled the National Worker Cooperative Development and Support Act, aims to promote and support worker-owned cooperative businesses in the United States in several key ways:

Promotion by Federal Agencies

The heads of specific federal agencies are directed to:

• Implement programs and initiatives to support the establishment and growth of worker-owned cooperatives.
• Review existing regulations and suggest changes to remove obstacles to the formation and expansion of these businesses.
• Facilitate access to capital for worker cooperatives through innovative financing options and existing programs.
• Collaborate with the United States Council on Worker Cooperatives, which will be established under this bill.
• Conduct and support research on the economic impact of worker cooperatives and the barriers they face.
• Provide education, outreach, and technical assistance for businesses transitioning to a worker cooperative model.
• Engage with various organizations to identify and share best practices for utilizing worker cooperatives.
• Train federal workers on integrating cooperatives into government systems.

Education and Outreach

The Administrator of the Small Business Administration (SBA) will:

• Develop educational materials related to worker cooperatives in various languages and formats for easy accessibility.
• Implement outreach programs targeted at communities where English is not the primary language to promote awareness of worker cooperatives.

Establishment of a Worker Cooperatives Council

A United States Council on Worker Cooperatives will be created, chaired by the Secretary of Labor, to:

• Coordinate federal efforts related to worker cooperatives.
• Develop a federal strategy to promote worker cooperatives as part of national economic development.
• Identify and propose solutions to regulatory barriers affecting these businesses.
• Coordinate data and educational initiatives about the benefits of cooperatives.
• Report to Congress on progress and challenges annually.

This council will dissolve ten years after its establishment.

Support for Cooperative Business Lending

The bill modifies the Small Business Act to:

• Expand a pilot program for intermediary lending specifically for worker cooperatives, increasing the funding limit from $20 million to $60 million.

Community Development Financial Institutions (CDFIs)

Changes are made to the Riegle Community Development and Regulatory Improvement Act to include provisions for educating and facilitating services related to establishing and managing worker cooperatives.

Definitions

The bill defines key terms such as:

• Covered agency: Includes agencies like the Small Business Administration, the Internal Revenue Service, and the Department of Labor.
• Worker-owned cooperative business: Defined as an entity majority-owned or controlled by its employees and organized under state law for cooperatives.

Relevant Companies

None found