Indy Standard

U.S. Senator Todd Young from Indiana has introduced a bill aimed at facilitating the transfer of business ownership to employees in private companies. This legislative effort comes as over 30 percent of U.S. corporate stock is currently owned by foreign investors, with projections indicating an increase due to retiring baby boomer business owners selling their companies.

The proposed American Ownership and Resilience Act seeks to return more profits to American workers by supporting employee ownership transitions. "This legislation will make it easier to establish or expand employee-ownership, incentivizing American businesses and creating new economic opportunities for Hoosier small business owners and their employees," stated Senator Young.

A significant number of private businesses are owned by individuals nearing retirement age, representing 2.9 million companies that employ over 32 million workers. Many such businesses face closure or sale in the mergers and acquisitions market, which could lead to job losses in local communities. Employee ownership offers a potential solution but involves a complex transition process currently burdened by regulatory compliance and financing challenges.

The American Ownership and Resilience Act proposes establishing a zero-subsidy investment facility through the U.S. Commerce Department. This facility would provide loan guarantees for licensed private investment funds focused on expanding employee ownership in small and mid-size businesses, thereby facilitating company sales to employees and supporting existing employee-owned firms.

The bill is co-sponsored by Senators Chris Van Hollen (D-Md.), Jerry Moran (R-Kan.), Tammy Baldwin (D-Wis.), Jeanne Shaheen (D-N.H.), Eric Schmitt (R-Mo.), and Peter Welch (D-Vt.). In the House of Representatives, similar legislation was introduced by Representatives Blake Moore (R-UT-1), Lori Trahan (D-MA-3), Dusty Johnson (R-SD), and Bill Foster (D-IL-11).