S. 1645: American Ownership and Resilience Act (119th Congress) Bill Summary

The American Ownership and Resilience Act is designed to support and promote independently owned businesses in the United States, particularly through means such as employee stock ownership plans (ESOPs) and worker cooperatives. The bill seeks to enhance domestic ownership and foster greater economic resilience by providing financial tools and regulatory support for these business models.

Financial Leverage for Businesses

The legislation establishes a facility aimed at providing financial leverage for investments specifically tailored to independently owned businesses. It emphasizes the use of ESOPs and worker cooperatives as a means to encourage ownership among employees and to enhance the stability of these businesses in the economy.

Licensing Criteria and Operational Requirements

The bill sets forth criteria for licensing ownership investment companies that will be responsible for managing investments in these independently owned businesses. The criteria include:

Evaluation of applicants’ qualifications and investment history
Assessment of management capabilities
Provisional licenses for new entrants in the sector
Specifications regarding private capital requirements
Conditions under which leverage and investment capital can be provided to eligible businesses

Compliance and Enforcement Procedures

To ensure compliance with the bill’s provisions, there are detailed procedures for petitioning court orders and enforcing compliance by the licensed investment companies. This includes:

Requirements for filing petitions to the court
Judicial findings related to non-compliance
Guidelines for investigations and examinations of licensed entities
Management of conflicts of interest
Processes for removing management officials when necessary
Penalties for violations of the regulations outlined in the bill

Financial Guarantees

The legislation includes provisions for ensuring financial security for invested parties. It guarantees interest payments on prepaid or defaulted debentures until the debt is repaid. Additionally, it allows for the redemption of trust certificates under specified circumstances. Importantly, the bill affirms the full faith and credit of the United States government for all guarantee payments, and it stipulates that the Secretary of the Treasury will not impose fees for these guarantees.