The state Senate recently voted to approve legislation that would help businesses transition to employee ownership.
Senate Bill 478 would establish within the Department of Community and Economic Development (DCED) an Office of Employee Ownership and establish an Employee Ownership Advisory Board.
The Office of Employee Ownership would provide technical and financial assistance to assist with the acquisition or the conversion of eligible small businesses to the employee ownership model. Financial assistance would come in the form of low-interest loans of up to $35,000.
An employee ownership advocate would lead efforts to promote employee ownership, provide education and outreach, and connect businesses with available resources.
The Employee Ownership Advisory Board would advise the DCED and General Assembly on policies and programs supporting employee-owned businesses.
“Our great state has thousands of small and family-owned businesses that are critical to our communities and local economies,” state Sen. Frank Farry (R-Bucks County), who sponsored the bill, said. “As business owners consider retirement or other transitions, employee ownership can provide another path to keep those businesses operating, protecting good-paying jobs and giving employees an opportunity to have a stake in the companies where they work.”
The bill moves to the state House of Representatives for consideration.