• ESOPs were created and are regulated by the federal government.
• ESOPs have been working well for decades, but they require significant technical expertise to set up, maintain, and properly administer.
• Silver Tsunami -- within the next 10 years, more than 2.35 million businesses will face the retirement of their owners. Many of these businesses would be attractive candidates for the formation of an ESOP, and their millions of employees would benefit well into the future as a result if that were to occur.
• When the Senate considered and passed S. 1260, the U.S. Innovation and Competition Act, the Moran-Sanders amendment was offered to provide federal grant funding at the Department of Labor to create and support state centers of employee ownership.
• These centers would help promote ESOPs, which provide real competitive advantages – better productivity, employee retention, and training, among other benefits like retirement security.
• Employee-owned companies also weather recessions and tough economic times better, are less likely to lay off employees, and more likely to contribute to their local communities.
• ESOPs could also help address the “silver tsunami” and the millions of businesses, now owned by the Baby Boom generation, which currently lack a succession plan.
• While the Moran-Sanders amendment was not included in the final Senate bill, the House may now consider this legislation (S. 1260), which passed with bipartisan support.
• The Senate may also consider other legislation where this proposal might fit.
• To both support American competitiveness and to help address the “silver tsunami” would you support grant funding for state employee ownership centers that offer education and technical assistance to businesses seeking to explore, convert to or manage an ESOP?
For more information contact:
Senior Director of Public Policy and Communications