Bill > S1645

This bill establishes a new Ownership Investment Facility within the Department of Commerce designed to encourage employee ownership and worker-owned cooperatives through specialized investment companies. The bill creates a comprehensive framework for licensing and regulating "ownership investment companies" that can provide capital to businesses, with a specific focus on helping employee stock ownership plans (ESOPs) and worker-owned cooperatives acquire majority ownership of businesses. Key provisions include establishing a $5 billion annual leverage facility, requiring independent trustees for transactions, mandating specific protections for employee investors, and creating a "Protégé OIC" program to help newer investment companies develop expertise. The bill includes extensive requirements for licensing, governance, reporting, and oversight, with the goal of promoting broader employee ownership across different types of businesses. Companies participating in the program must invest 100% of their capital in "covered investments" with at least half going to direct employee ownership transitions, and they are prohibited from exercising direct control over the businesses they invest in. The facility is designed to sunset after 20 years, with provisions to ensure ongoing support for existing investments.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1645/all-info