Improving SBA Engagement on Employee Ownership Act
This bill, titled the Improving SBA Engagement on Employee Ownership Act, would direct the Small Business Administration (SBA) to increase its outreach and education around employee ownership and cooperatives. A notable feature is a new requirement for the SBA Administrator (or a designee) to participate in any federal working groups, meetings, or other engagements on cooperatives or employee ownership that are hosted by other federal agencies or offices, provided the Administrator is invited or has had a prior engagement or relationship. The goal is to strengthen interagency coordination and ensure SBA visibility and involvement in conversations about employee ownership. In addition, the bill makes two related changes: (1) it expands the scope of SBA outreach related to the Small Business Investment Company (SBIC) program by including investors and limited partners of SBIC-backed companies; and (2) it Require the SBA to implement outreach requirements from the 2019 NDAA’s Section 862(e) through its Small Business Employee Ownership and Cooperatives Promotion Program within 180 days of enactment. Collectively, the bill aims to boost SBA-backed education, outreach, and collaboration to promote employee ownership and cooperative business models.
Key Points
- 1The SBA Administrator (or a designee) must attend any federal working groups, meetings, forums, or other engagements on cooperatives or employee ownership hosted by other federal agencies, if invited or if there is a previous engagement/relationship.
- 2The bill amends the SBIC outreach provisions to explicitly include outreach to investors and limited partners of SBIC-backed companies.
- 3Within 180 days of enactment, the SBA must implement the outreach requirements of Section 862(e) of the 2019 National Defense Authorization Act (NDAA) through the agency’s Small Business Employee Ownership and Cooperatives Promotion Program.
- 4The act is titled the “Improving SBA Engagement on Employee Ownership Act” to reflect its focus on promoting employee ownership and related educational efforts.
- 5There is no new agency funding authorization contained in the text; obligations are largely procedural and coordination-based rather than new programs with explicit appropriations.