The News – USA passes new law to aid business transition to worker-ownership


Worker co-ops in the USA have welcomed the Main Street Employee Ownership Act, which improves access to capital and technical assistance for employee-owned businesses.

Signed into law on 13 August, it is the first act to focus on employee ownership in more than 20 years. Although it provides no extra public funding, it does fast-track loan dispersal to help companies finance their conversion to employee ownership.

It also directs the Small Business Administration (SBA) to make these loans more available to co-operatives; and to work with the country’s network of 900 Small Business Development Centers (SBDCs) to provide transition-related technical training, executive education, and one-on-one consulting.

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