,,ii #aaeth ,,congress #b;d ,session ,s4 #bghf ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #bf1 #bjah,mrs4 ,gillibrand 7for herself1 ,mr4 ,young1 ,mr4 ,risch1 ,mrs4 ,shaheen1 ,mr4 ,booker1 ,ms4 ,collins1 and ,mr4 ,cardin7 introduced the following bill2 which was read twice and referred to the ,committee on ,small ,business and ,entrepreneurship ,a ,,bill ,to expand opportunities to available employee-owned business concerns through ,small ,business ,administration loan programs1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,main ,street ,employee ,ownership ,act of #bjah4 #b4 ,definitions ,in this ,act-- 7#a7 the terms ,administration and ,administrator mean the ,small ,business ,administration and the ,administrator thereof1 respectively2 7#b7 the term cooperative has the meaning given the term in section #g7;a77#ce7 of the ,small ,business ,act1 as added by section #c2 7#c7 the term employee-owned business concern means-- 7,a7 a cooperative2 and 7,b7 a qualified employee trust2 7#d7 the terms qualified employee trust and small business concern have the meanings given those terms in section #c of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb71 as amended by this ,act2 and 7#e7 the term small business development center means a small business development center described in section #ba of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdh74 #c4 ,expansion of #g7;a7 loans 7a7 ,in general ,section #g7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77 is amended-- 7#a7 in paragraph 7#ae7-- 7,a7 in subparagraph 7,a7-- 7i7 by striking this subsection to qualified employee trusts and inserting this subsection-- 7i7 to qualified employee trusts 2 7ii7 in clause 7i71 as so designated-- 7,i7 by inserting 1 and for any transaction costs associated with purchasing1 after purchasing2 and 7,,ii7 by striking the period at the end and inserting 2 and2 and 7iii7 by adding at the end the following3 7ii7 to a small business concern under a plan approved by the ,administrator1 if the proceeds from the loan are only used to make a loan to a qualified employee trust1 and for any transaction costs associated with making that loan1 that results in the qualified employee trust owning at least #ea percent of the small business concern4 2 7,b7 in subparagraph 7,b7-- 7i7 in the matter preceding clause 7i71 by inserting or by the small business concern after the trustee of such trust2 7ii7 in clause 7ii71 by striking and at the end2 7iii7 in clause 7iii71 by striking the period at the end and inserting 1 and2 and 7iv7 by adding at the end the following3 7iv7 with respect to a loan made to a trust1 or to a cooperative in accordance with paragraph 7#ce7-- 7,i7 a seller of the small business concern may remain involved as an officer1 director1 or key employee of the small business concern when a qualified employee trust or cooperative has acquired #ajj percent of ownership of the small business concern2 and 7,,ii7 any seller of the small business concern who remains as an owner of the small business concern1 regardless of the percentage of ownership interest1 shall be required to provide a personal guarantee by the ,administration4 2 and 7,c7 by adding at the end the following3 7,f7 ,a small business concern that makes a loan to a qualified employee trust under subparagraph 7,a77ii7 is not required to contain the same terms and conditions as the loan made to the small business concern that is guaranteed by the ,administration under such subparagraph4 7,g7 ,with respect to a loan made to a qualified employee trust under this paragraph1 or to a cooperative in accordance with paragraph 7#ce71 the ,administrator may1 as determined appropriate by the ,administrator1 elect to not require any mandatory equity to be provided by the qualified employee trust or cooperative to make the loan4 2 and 7#b7 by adding at the end the following3 7#ce7 ,loans to cooperatives 7,a7 ,definition ,in this paragraph1 the term cooperative means an entity that is determined to be a cooperative by the ,administrator1 in accordance with applicable ,federal and ,state laws and regulations4 7,b7 ,authority ,the ,administration shall guarantee loans made to a cooperative for the purpose described in paragraph 7#ae74 4 7b7 ,delegation of authority to preferred lenders ,section #e7;b77#g7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcd7;b77#g77 is amended by inserting 1 including loans guaranteed under paragraph 7#ae7 or 7#ce7 of section #g7;a7 after deferred participation loans4 #d4 ,small business investment company program outreach ,the ,administrator shall provide outreach and educational materials to companies licensed under section #cja7;c7 of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fha7;c77 to increase the use of funds to make investments in company transitions to employee-owned business concerns4 #e4 ,small business microloan program outreach ,the ,administrator shall provide outreach and educational materials to intermediaries under section #g7m7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7m77 to increase the use of funds to make loans to employee-owned business concerns1 including transitions to employee-owned business concerns4 #f4 ,small business development center outreach and assistance 7a7 ,establishment ,the ,administrator shall establish a ,small ,business ,employee ,ownership and ,cooperatives ,promotion ,program to offer technical assistance and training on the transition to employee ownership through cooperatives and qualified employee trusts4 7b7 ,small business development centers 7#a7 ,in general ,in carrying out the program established under subsection 7a71 the ,administrator shall enter into agreements with small business development centers under which the centers shall-- 7,a7 provide access to information and resources on employee ownership through cooperatives or qualified employee trusts as a business succession strategy2 7,b7 conduct training and educational activities2 and 7,c7 carry out the activities described in subparagraph 7,u7 of section #ba7;c77#c7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdh7;c77#c774 7#b7 ,additional services ,section #ba7;c77#c7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdh7;c77#c77 is amended-- 7,a7 in subparagraph 7,s71 by striking and at the end2 7,b7 in subparagraph 7,t71 by striking the period at the end and inserting 2 and2 and 7,c7 by adding at the end the following3 7,u7 encouraging and assisting the provision of succession planning to small business concerns with a focus on transitioning to cooperatives1 as defined in section #g7;a77#ce71 and qualified employee trusts 7collectively referred to in this subparagraph as employee-owned business concerns71 including by-- 7i7 providing training to individuals to promote the successful management1 governance1 or operation of a business purchased by those individuals in the formation of an employee-owned business concern2 7ii7 assisting employee-owned business concerns that meet applicable size standards established under section #c7;a7 with education and technical assistance with respect to financing and contracting programs administered by the ,administration2 7iii7 coordinating with lenders on conducting outreach on financing through programs administered by the ,administration that may be used to support the transition of ownership to employees2 7iv7 supporting small business concerns in exploring or assessing the possibility of transitioning to an employee-owned business concern2 and 7v7 coordinating with the cooperative development centers of the ,department of ,agriculture1 the land grant extension network1 the ,manufacturing ,extension ,partnership1 community development financial institutions1 employee ownership associations and service providers1 and local1 regional and national cooperative associations4 4 #g4 ,interagency working group 7a7 ,in general ,not later than #ij days after the date of enactment of this ,act1 the ,administrator or a designee of the ,administrator shall coordinate and chair an interagency working group1 which shall-- 7#a7 develop recommendations on how ,federal programs can promote1 support1 and increase the number of employee-owned business concerns2 7#b7 ensure coordination with ,federal agencies and national and local employee ownership1 cooperative1 and small business organizations2 and 7#c7 publish a report on the activities of the interagency working group that is indexed and maintained for public review4 7b7 ,meetings ,the interagency working group described in subsection 7a7 shall meet in person or via electronic resources at such times as determined necessary by the ,administrator1 but not less frequently than biannually4 #h4 ,amendment to report to ,congress on status of employee-owned firms ,section #g7;a77#ae7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77#ae771 as amended by this ,act1 is amended-- 7#a7 in subparagraph 7,e71 by striking ,administration4 and inserting ,administration1 which shall include-- 7i7 the total number of loans made to cooperatives and qualified employee trusts 7collectively referred to in this subparagraph as employee-owned business concerns7 that were guaranteed by the ,administrator under this section or section #ejb of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fif71 including the number of loans made-- 7,i7 to small business concerns owned and controlled by socially and economically disadvantaged individuals2 and 7,,ii7 to cooperatives2 7ii7 the total number of financings made to employee-owned business concerns by companies licensed under section #cja7;c7 of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fif7;c771 including the number of financings made-- 7,i7 to small business concerns owned and controlled by socially and economically disadvantaged individuals2 and 7,,ii7 to cooperatives2 and 7iii7 any outreach and educational activities conducted by the ,administration with respect to employee-owned business concerns4 2 and 7#b7 by adding at the end the following3 7,h7 ,in this paragraph-- 7i7 the term cooperative has the meaning given the term in paragraph 7#ce72 and 7ii7 the term small business concern owned and controlled by socially and economically disadvantaged individuals has the meaning given the term in section #h7;d77#c77;,c74 4 #i4 ,report on cooperative lending 7a7 ,sense of ,congress ,it is the sense of ,congress that cooperatives have a unique business structure and are unable to access the lending programs of the ,administration effectively due to loan guarantee requirements that are incompatible with the business structure of cooperatives4 7b7 ,study and report 7#a7 ,study ,the ,administrator1 in coordination with lenders1 stakeholders1 and ,federal agencies1 shall study and recommend practical alternatives for cooperatives that will satisfy the loan guarantee requirements of the ,administration4 7#b7 ,report ,not later than #abj days after the date of enactment of this ,act1 the ,administrator shall submit to ,congress the recommendations developed under paragraph 7#a7 and a plan to implement those recommendations4 #aj4 ,amendment to definition of qualified employee trust ,section #c7;c77#b77;,a77ii7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb7;c77#b77;,a77ii77 is amended to read as follows3 7ii7 which provides that each participant is entitled to direct the plan trustee as to the manner of how to vote the qualified employer securities 7as defined in section #dige7;e77#h7 of the ,internal ,revenue ,code of #aihf71 which are allocated to the account of such participant with respect to a corporate matter which 7by law or charter7 must be decided by a vote conducted in accordance with section #dji7;e7 of the ,internal ,revenue ,code of #aihf2 and 4