U.S. senators introduce bill to improve employee ownership of small businesses
A group of U.S. senators, including Maryland Senator Chris Van Hollen, has introduced a bill to make it easier for employees to own portions of private companies.
According to the bipartisan group, more than 30% of U.S. corporate stock is owned by foreign investors.
The proposed measure, called the Lawmakers' American Ownership and Resilience Act, would create a new federal program under the Department of Commerce to support the transition of businesses to employee ownership.
It would accomplish this by creating and funding Ownership Investment Companies (OICs), specialized firms that would use federally guaranteed capital (up to $5 billion per year) to finance the sale of businesses to Employee Stock Ownership Plans (ESOPs) or eligible "worker-owned cooperatives."
Maryland's small business economy
Maryland leaders have spoken recently about bolstering the state's small business economy.
Governor Wes Moore has said that he wants to foster an environment where businesses can grow and thrive.
"We will continue going out, meeting with CEOs, meeting with business leaders, particularly in growth industries, and letting them know that there is no better backdrop for their long-term growth than the state of Maryland," the governor said in February.
Growing business avenues in Maryland
Howard County Executive Calvin Ball said that he plans to help federal workers who have been displaced by the Trump administration's efforts to slash the size of the federal workforce by helping them transition into entrepreneurship.
Ball said many federal workers have taken an interest in cybersecurity and AI.
In 2024, Baltimore became a federally designated tech hub, through a federal program to expand manufacturing across the country.
Last week, Gov. Moore announced a state partnership with the U.S. Defense Advanced Research Projects Agency (DARPA) to invest $100 million in the state's quantum industry.
No matter the avenue, improving the economy is a top priority for leaders like Moore, who said he is working to help close the state's $3.3 billion budget deficit.
