April 24, 2025
Mr. Case (for himself, Mr. Bresnahan, and Ms. Tlaib) introduced the following bill; which was referred to the Committee on Small Business
To establish a position in the Small Business Administration to provide to small businesses assistance with establishing employee stock ownership plans, and for other purposes.
Section 1. Short title
This Act may be cited as the ESOP Funding for SBA Position Act of 2025
.
Sec. 2. Establishment of ESOP support position
(a) In general
There is established in the Administration a position in the competitive service (as such term is defined in section 2102 of title 5, United States Code) which shall be appointed by the Administrator and responsible for providing small business concerns assistance with establishing employee stock ownership plans.
(b) Responsibilities
The responsibilities of the position established under subsection (a) include—
(1)
providing guidance to small business concerns on establishing employee stock ownership plans, including tax treatment of such plans, regulatory compliance, stock valuation, and opportunities to acquire funding to establish such a plan;
(2)
coordinating with relevant public and private entities to provide assistance and resources for establishing employee stock ownership plans that are tailored for small business concerns;
(3)
coordinating with the relevant personnel at the Department of Labor to assist small business concerns establishing employee stock ownership plans with compliance with all relevant regulatory requirements;
(4)
advocating for appropriate guidance from relevant Federal agencies, including the Department of Labor, regarding regulations relating to establishing and maintaining employee stock ownership plans, including regulations regarding stock valuation and employee ownership; and
(5)
such other responsibilities as determined appropriate by the Administrator.
Sec. 3. Reporting
Not later than one year after the date of the enactment of this Act, and annually thereafter, the Administrator shall submit to Congress a report on the activities of the position established under section 2(a), including the number of small business concerns that have received assistance from such position, the types of assistance and resources provided to small business concerns by such position, and any policy recommendations for improving the process for small business concerns to establish and maintain employee stock ownership plans.
Sec. 4. Definitions
In this Act:
(1) Administration
The term Administration means the Small Business Administration.
(2) Administrator
The term Administrator means the Administrator of the Administration.
(3) Employee stock ownership plan
The term employee stock ownership plan has the meaning given such term in section 4975(e)(7) of the Internal Revenue Code of 1986 (26 U.S.C. 4975(e)(7)).
(4) Small business concern
The term small business concern has the meaning given such term under section 3 of the Small Business Act (15 U.S.C. 632).
Sec. 5. Authorization of appropriations
There is authorized to be appropriated such sums as are necessary to carry out this Act, except that, for the fiscal year in which this Act is enacted, there is authorized $500,000 to carry out this Act.