ESOP Funding for SBA Position Act of 2025

The ESOP Funding for SBA Position Act of 2025 would create a new, permanent, competitive service position within the Small Business Administration (SBA). This position, appointed by the SBA Administrator, would assist small businesses in establishing employee stock ownership plans (ESOPs). Responsibilities include providing guidance on how ESOPs work, tax treatment, regulatory compliance, stock valuation, and funding options; coordinating with public and private entities to tailor ESOP resources for small firms; working with the Department of Labor to ensure regulatory compliance; and advocating for federal guidance on ESOP regulations. The bill requires annual reporting to Congress on the position’s activities, whom it helped, types of assistance provided, and policy recommendations to improve ESOP processes. Funding authorization starts with a baseline of $500,000 for the first year, with authority to appropriate any necessary sums thereafter. In short, the bill aims to boost ESOP adoption among small businesses by adding SBA-led guidance and coordination. For context, an ESOP is a type of employee benefit plan that allows employees to own stock in their company, often used for employee retention, succession planning, and business transitions. The act does not change tax law or create new ESOPs by mandate; rather, it creates a new SBA role to help small firms navigate and access ESOP options.