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H.R. 5236, Main Street Employee Ownership Act of 2018 (CBO Report for Congress)

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Congress 115th
Date Requested May 8, 2018
Requested By the House of Representatives
Date Sent June 26, 2018
Description:

H.R. 5236 would expand the Small Business Administration’s (SBA) 7(a) loan program to allow the agency to make loan guarantees to small businesses for an additional purpose. Under the bill, small businesses could use the proceeds of guaranteed loans to make loans to certain qualified employee trusts, allowing the trust to hold a majority stake in the small business. Under H.R. 5236, the SBA also would be directed to provide training, outreach, and educational materials to participants in several SBA programs regarding transitioning a small business to an employee-owned business. Lastly, the legislation would require the SBA to coordinate and chair an interagency working group that would develop recommendations and issue reports on employee-owned businesses.

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