Recently the Small Business Administration released a report on financing alternatives that does not fulfill Congress’s directive in Main Street Employee Ownership Act (MSEOA). The USFWC has worked with our coalition partners to lead the effort of implementation on the MSEOA.
SBA was required to submit this report by the Main Street Employee Ownership Act, which was signed into law by President Trump in 2018. This law made strides in improving access to SBA loan programs and financial products for co-ops and Employee Stock Ownership Plans (ESOPs).
SBA requires a personal guarantee on SBA products in the event that the owner(s) of a business cannot repay the loan. The shared ownership structure of a cooperative business makes this requirement nearly impossible to fulfill.
Along with 90 partner organizations and led by NCBA CLUSA, we sent a letter to the Senate and House of Representatives Committees on Small Business requesting a hearing on the Small Business Administration’s implementation of the Main Street Employee Ownership Act. Support for this request came from organizations across 26 states and the District of Columbia.