American Ownership and Resilience Act

This bill creates a new federal program, run by the Commerce Department, to help local businesses become employee‑owned or worker‑owned when owners retire or sell. It would license special “ownership investment companies” (OICs) and back them with government guarantees so they can make loans or equity investments to support these ownership transitions and business succession plans . Total support is capped at $5 billion per year, with not more than 20% going to mentored “Protégé” funds; a formal Protégé program helps new managers get started .

The bill adds worker protections: an independent trustee must review ESOP deals and obtain a fairness opinion; employees can’t be asked to pay for the deal through wage cuts or retirement rollovers; and OICs can’t take control of the businesses they finance. It also sets rules for fair payouts to employee‑owners if a company is later sold and tries to keep employee ownership from shrinking while an OIC is invested . OICs must raise at least $10 million in private capital and spread risk across companies; the program also encourages investments in U.S. manufacturing and other critical industries and technologies . Annual public reports will track how many workers are gaining ownership (including ESOP and co‑op details) and include oversight and penalty tools to keep funds in line .

• Who is affected
  • Employees gaining ownership through ESOPs or worker cooperatives, business owners planning succession, and investment managers seeking an OIC license .
• What changes
  • Government‑backed support for licensed OICs to offer long‑term loans or equity for ownership transitions; loans can run up to 20 years, and OICs may refinance company debt to simplify payments .
  • Not more than $5B a year in total support; added incentives to invest in key U.S. industries; extra guardrails like diversification limits and fair‑deal rules for workers .
• When
  • The Department must start accepting license applications within about 18 months (540 days) and approve the first set within 2 years. The program stops issuing new licenses 20 years after the first license, but existing funds can keep using previously committed support.