Small Business Employee Ownership Act

Summary

Small Business Employee Ownership Act - Amends the Small Business Act to make employee-owned firms eligible for financial assistance under the business loan program. States that in the case of small business concerns using an employee stock ownership plan, as defined in the Internal Revenue Code of 1954, all financial assistance shall be made to the trust created for employee ownership of stock (ESOT). Predicates such assistance on: (1) a guarantee by the company seeking assistance that it will repay all obligations incurred by the ESOT; (2) the written assurance of the trustee of the ESOT that all guaranteed loans will be used solely for the purchase of company stock; (3) a distribution arrangement which vests ownership of all stock with the employees no later than the expiration date of any assistance made available to acquire such stock; and (4) a certified plan, meeting specified conditions, for the allocation of company stock among the employees. Authorizes the extension of loan guarantees to employee organizations, including those using an ESOT, to finance the acquisition of the employee's workplace if it is a small business or a subsidiary which, if independently owned, would be a small business. States that such guarantees may be extended only if the small business or subsidiary would otherwise close, liquidate, relocate or sell out to a large business or if the owner agrees to the purchase by the employees. Requires an employee organization to compile a feasibility study and plan containing specified provisions in order to be eligible for such guarantees. Limits the principal amount of any loan guaranteed under this Act to $1,000,000. Authorizes $10,000 loans to conduct feasibility studies which will be considered grants if the loan application is denied. Directs the Administrator of the Small Business Administration to report periodically to the Congress on the programs established by this Act. Authorizes the Small Business Administration to extend loan guarantees directly to an owner of a business who is selling the business to employees under an installment contract provided specified conditions are met in the event of default. Makes a company with 51 percent of its stock allocated through an ESOT to one or more socially and economically disadvantaged individuals eligible for the minority enterprise contract assistance program.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

1. 8 February 1979

   Introduced

   Referred to Senate Select Committee on Small Business.

   Source: IntroReferral

2. 8 February 1979

   Introduced

   Introduced in Senate

   Source: IntroReferral

3. 24 April 1979

   Reported

   Reported to Senate from the Select Committee on Small Business with amendment, S. Rept. 96-93.

   Source: Committee

4. 24 April 1979

   Reported

   Reported to Senate from the Select Committee on Small Business with amendment, S. Rept. 96-93.

   Source: Committee

5. 1 May 1979

   Floor

   Call of calendar in Senate.

   Source: Floor

6. 1 May 1979

   Passed

   Passed/agreed to in Senate: Measure passed Senate, amended.

   Source: Floor

7. 3 May 1979

   Introduced

   Referred to House Committee on Small Business.

   Source: IntroReferral

Votes

No vote records are attached yet.

Versions

No version snapshots stored. Document URLs remain at the source.

Documents

2 official files

• Reported to Senate with amendment(s)

  summary · EN · 24 April 1979

  Open at official source

• Introduced in Senate

  summary · EN · 8 February 1979

  Open at official source

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Sponsors

• Sen. Stewart, Donald [D-AL] · D · Sponsor
• Sen. Nelson, Gaylord [D-WI] · D · Cosponsor
• Sen. Weicker, Lowell P., Jr. [R-CT] · R · Cosponsor
• Sen. Hatch, Orrin G. [R-UT] · R · Cosponsor
• Sen. Pressler, Larry [R-SD] · R · Cosponsor
• Sen. Baucus, Max [D-MT] · D · Cosponsor
• Sen. Gravel, Mike [D-AK] · D · Cosponsor
• Sen. Bentsen, Lloyd M. [D-TX] · D · Cosponsor
• Sen. Hatfield, Mark O. [R-OR] · R · Cosponsor
• Sen. Heinz, John [R-PA] · R · Cosponsor
• Sen. Leahy, Patrick J. [D-VT] · D · Cosponsor
• Sen. Levin, Carl [D-MI] · D · Cosponsor
• Sen. Inouye, Daniel K. [D-HI] · D · Cosponsor
• Sen. Hayakawa, Samuel Ichiye [R-CA] · R · Cosponsor
• Sen. Morgan, Robert B. [D-NC] · D · Cosponsor
• Sen. Riegle, Donald W., Jr. [D-MI] · D · Cosponsor
• Sen. Goldwater, Barry [R-AZ] · R · Cosponsor
• Sen. Zorinsky, Edward [D-NE] · D · Cosponsor
• Sen. Domenici, Pete V. [R-NM] · R · Cosponsor
• Sen. Humphrey, Gordon J. [R-NH] · R · Cosponsor
• Sen. Boschwitz, Rudy [R-MN] · R · Cosponsor
• Sen. Simpson, Alan K. [R-WY] · R · Cosponsor
• Sen. Cohen, William S. [R-ME] · R · Cosponsor
• · hssm00 · Standing
• · sssb00 · Standing

Related records

• related to → Small Business Employee Ownership Act