American Ownership and Resilience Act

This bill creates a new program at the Department of Commerce to grow worker ownership. It lets licensed “ownership investment companies” (OICs) raise government‑backed funds and invest them in independently owned businesses, especially those moving to employee stock ownership plans (ESOPs) or worker‑owned cooperatives. The program sets guardrails: OICs can’t control the businesses they fund, ESOP deals must use an independent trustee and a fairness opinion, and workers get voting protections and fair payout rules if the company is sold. These deals should keep shares circulating to employees while the OIC is invested .

To keep costs in check and protect taxpayers, OICs must have at least $10 million in private capital, pay a 3% fee on government leverage, and follow limits on interest rates and loan terms (loans can run up to 20 years). The government can pool OIC debt into trust certificates backed by the full faith and credit of the United States, issued at least once every 12 months. OICs face regular exams, valuation rules, and can lose their license for violations. The Department must report yearly on results, including how many workers gain ownership. The program starts taking applications within 540 days of enactment, aims to issue first licenses within 2 years, and stops issuing new licenses 20 years after the first license; existing OICs can keep using already‑promised leverage after that date. A “Protégé OIC Program” pairs new managers with experienced ones to speed setup and expand capacity .

• Who is affected: Independently owned businesses, workers in ESOPs or worker cooperatives, and licensed investment funds (OICs) overseen by Commerce .
• What changes:
  • New licensed OICs can provide debt or equity to help businesses transition to worker ownership; they may require refinancing and approval before new debt is taken on. Interest rate caps and up to 20‑year terms apply .
  • ESOP deals need an independent trustee, fairness opinion, worker voting rights, share‑recirculation, and fair payout rules on sale; OICs cannot control the businesses they fund .
  • Government‑backed leverage, pooled into trust certificates and guaranteed by the United States, with a 3% leverage fee; periodic issuance at least every 12 months .
  • Oversight includes exams, valuations, reporting to Congress, and penalties for violations, including license suspension or revocation .
• When: Applications start within 540 days of enactment; first licenses targeted within 2 years; no new licenses after 20 years from the first approval, though existing OICs can continue with previously committed leverage. A mentoring track (Protégé OIC Program) is available to speed new entrants .