Reichert, Kind Introduce Bill to Encourage Creation of Employee-Owned Businesses
Washington, DC – U.S. Reps. Dave Reichert (R-WA) and Ron Kind (D-WI) introduced the Promotion and Expansion of Private Employee Ownership Act, which encourages the creation of employee-owned businesses through S Corporation Employee Stock Ownership Plans (S ESOPs).
“Employee-ownership rewards hard-working Americans for committing themselves to the success of the company they work for, creating jobs and growing the economy along the way,” said Rep. Reichert. “Our bill encourages this pride in ownership and gives employees the power to retire on their own terms. American workers deserve to have confidence in their financial security from their prime working years through their retirement.”
“By making it easier for companies to become employee-owned, this legislation will grow the number of employee owned businesses and provide retirement security to more Americans,” said Rep. Kind. “Employee-owned companies perform better – not just for themselves but for their employees as well. I look forward to working with my colleagues to strengthen opportunities for employee-ownership and unleash their potential to enable more Americans to save for retirement.”
The Promotion and Expansion of Private Employee Ownership Act includes provisions to encourage owners of S Corporations to sell their stock to an ESOP, expand financing opportunities for S Corporation ESOPs, provide technical assistance for companies that may be interested in forming an S Corporation ESOP, and ensure that small businesses that become ESOPs retain their Small Business Association certification. Reps. Reichert and Kind are supported in their efforts by original cosponsors Reps. Pat Tiberi (R-OH), Earl Blumenauer (D-OR), Erik Paulsen (R-MN), Richard Neal (D-MA), and Bill Pascrell (D-NJ).