United States Employee Ownership Bank Act

The United States Employee Ownership Bank Act (H.R. 2969) proposes the creation of a federal bank within the Department of the Treasury designed to help workers purchase the companies where they work. The bank would provide low-interest loans, loan guarantees, and technical assistance to help employees establish employee stock ownership plans (ESOPs) or worker-owned cooperatives, provided the employees own at least 51 percent of the business.

For everyday citizens, this bill aims to preserve local jobs and manufacturing bases by making it easier for employees to take over businesses that might otherwise close or move. By encouraging employee ownership, the legislation seeks to increase worker participation in company decision-making and provide employees with a direct stake in the financial success of their employers. Additionally, the bill would allow private financial institutions to receive credit under the Community Reinvestment Act for supporting these employee-ownership initiatives.