Improving SBA Engagement on Employee Ownership Act

# Improving SBA Engagement on Employee Ownership Act (HR 5778) **What the Bill Does** This bill would require the Small Business Administration (SBA) to increase its involvement in promoting employee ownership models, where workers have a stake in owning the company they work for. The legislation directs the SBA to develop programs, provide guidance, and offer financial support to help small business owners transition their companies to employee-owned structures. This could include loans, technical assistance, and educational resources for both business owners considering the transition and employees interested in buying into their companies. **Who It Affects and Key Provisions** The bill primarily affects small business owners and their employees, as well as the SBA itself.

It would expand the SBA's role in facilitating employee ownership arrangements, potentially making it easier for workers to become partial or full owners of their workplaces. The legislation addresses business succession planning, since employee ownership can be an alternative when business owners retire or want to exit their companies. **Current Status** HR 5778 is currently in committee and has not yet been voted on by the full House of Representatives. The bill was introduced by Representative LaMonica McIver (D-NJ-10) and remains in the early stages of the legislative process.