American Ownership and Resilience Act

This bill proposes the creation of an investment facility within the Department of Commerce to provide financial leverage to licensed ownership investment companies (OICs). These OICs would manage capital to finance the conversion of private businesses into employee stock ownership plans (ESOPs) or worker-owned cooperatives, backed by the full faith and credit of the United States. The legislation also establishes capital requirements, a mentorship program for new OICs, and mandatory independent financial oversight for ESOP conversions.

This bill affects private business owners and their employees by facilitating the conversion of companies into employee stock ownership plans (ESOPs) or worker-owned cooperatives. It also impacts investment firms that seek to become licensed as ownership investment companies (OICs) to manage capital and finance these transitions. Additionally, the Department of Commerce is affected as it is tasked with establishing the investment facility and licensing OICs.

• Establishment of an investment facility for employee ownership. The Department of Commerce is required to create an investment facility designed to provide leverage to licensed ownership investment companies (OICs).
• Financing for business conversions to ESOPs or cooperatives. Licensed OICs manage capital to finance the sale of private businesses to employee stock ownership plans (ESOPs) or eligible worker-owned cooperatives. These companies are authorized to borrow money and issue obligations backed by the full faith and credit of the United States.
• Independent oversight for ESOP transactions. The bill requires the appointment of an independent trustee for sales to an ESOP to obtain a fairness opinion from an independent financial advisor regarding the investment.
• Creation of the Protégé OIC program. A mentorship program is established to allow existing ownership investment companies to provide guidance and support to new OICs.
• Capital requirements and enforcement standards. The legislation sets specific requirements for private capital, establishes limitations on third-party debt, and outlines enforcement provisions for participating entities.

The bill establishes a new investment facility within the Department of Commerce to facilitate the transition of private businesses to employee-owned structures, specifically referencing existing legal frameworks for Employee Stock Ownership Plans (ESOPs) and worker-owned cooperatives.

The bill aims to facilitate the conversion of private businesses into employee-owned entities by establishing a Department of Commerce investment facility. This facility provides financial leverage and federal guarantees to licensed ownership investment companies for the purpose of financing business sales to employee stock ownership plans or worker-owned cooperatives.