Congress is rounding out 2021 with a cooperative highlight. On Tuesday, December 22, 2021, Colorado’s Congressman Joe Neguse (CO-2) introduced the Capital for Cooperatives Act in the House.
This bill eliminates the requirement that cooperatives provide a personal guarantee with respect to certain Small Business Administration (SBA) loans. It also requires the SBA, in collaboration with the Interagency Working Group on Cooperative Development, to develop recommendations and cooperate with federal agencies and other entities to promote, support, and increase the number of cooperatives in the U.S.
The bill is a complement to the Senate legislation introduced by Sen. Hickenlooper (CO) earlier this year to remove barriers for cooperatives in accessing capital at SBA.
Rep. Neguse said, “Small businesses are the heartbeat of our economy. Yet, far too often bureaucratic measures are keeping them from accessing the resources and support they need to grow and thrive. The Capital for Cooperatives Act will address one such roadblock, so that more people can unlock the funds they need to start or grow their cooperative businesses.”
“The USFWC applauds Representative Neguse and Senator Hickenlooper for their support for the development and growth of cooperatives in Colorado and across the nation.” says Esteban Kelly, Executive Director of the USFWC. “As we face the challenges of the pandemic and the impending silver tsunami of retiring business owners, cooperatives must play a key role in the recovery of our economy. Cooperatives have historically been a solution to create wealth-, skill-, and community-building opportunities throughout the world. In order to truly build back a better economy, it is vital that we invest now in shared ownership business models for a more resilient future.”
“The USFWC applauds Representative Neguse and Senator Hickenlooper for their support for the development and growth of cooperatives both in Colorado and across the nation” says Esteban Kelly, Executive Director of the USFWC. “As we face the challenges of the pandemic and the historical rates of retiring business owners, and a growing resurgence in labor power, cooperatives are key for a stable and more sustainable economy. Cooperatives have historically been a solution to create wealth-, skill-, and community-building opportunities throughout the world. In order to truly build a better economy, it is vital to invest in shared ownership and worker power for a more resilient future now.”
Responding to the legislation, NCBA CLUSA president and CEO Doug O’Brien thanked Rep. Neguse for leading the Capital for Cooperatives Act in the House. “This legislation will pave the way for a long-term solution at the U.S. Small Business Administration to ensure that more people can unlock the capital needed to start or grow their cooperative business,” O’Brien said.
Learn more about the Capital for Cooperatives Act and how you can support this legislation
