S. 1645 · Where this bill is now
In committee
Introduced in the Senate, May 7, 2025
What this bill does
In plain words · AI-written from the official summaryHelps workers buy their companies
Ever wondered what happens when a business owner wants to sell but no one outside the company can afford to buy it. This bill creates a new way to help. It sets up investment companies that can lend money to employees so they can purchase their workplace as a group. These investment companies get backing from the federal government to guarantee they can pay back their loans. The bill also includes protections like requiring independent advisors to make sure the sale price is fair.
How it affects you
If you work at a private business that might be sold, this bill could eventually give you and your coworkers a path to own the company together. Business owners considering selling may have a new option for passing their company to employees. Most other people would not directly experience changes from this bill, though it represents a new federal approach to worker ownership.
Read the official summary (Introduced in Senate, May 7, 2025)
American Ownership and Resilience Act
This bill creates an investment facility to support the conversion of private businesses into employee-owned businesses.
Specifically, the Department of Commerce must establish an investment facility that provides leverage to ownership investment companies (OICs) licensed by Commerce.
Under the bill, OICs
• manage capital for the purpose of financing the sale of a private business to an employee stock ownership plan (ESOP) or eligible worker-owned cooperative,
• have the authority to borrow money and issue securities or other obligations to finance the sale, and
• have the full faith and credit of the United States to guarantee the payment of all such amounts.
In a sale to an ESOP, an independent trustee must be appointed to obtain a fairness opinion on the investment from an independent financial advisor.
New OICs may be mentored by other OICs through the Protégé OIC program established by the bill.
The bill also establishes private capital requirements, third-party debt limitations, and enforcement provisions.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionS. 1645
A BILL
American Ownership and Resilience Act
Sponsor: Sen. Chris Van Hollen (D-MD) · Introduced May 7, 2025 · Finance and Financial Sector · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action May 7, 2025: “Read twice and referred to the Committee on Finance.”
Sections
Sections · 23
- Sec. 1Short titleNo change
- Sec. 2DefinitionsNo change
- Sec. 3Ownership investment facilityNo change
- Sec. 4Organization of ownership investment companiesNo change
- Sec. 5Protégé OIC ProgramNo change
- Sec. 6Capital requirementsNo change
- Sec. 7Borrowing powerNo change
- Sec. 8Provision of investment capital for covered business concernsNo change
- Sec. 9Portfolio diversificationNo change
- Sec. 10ExemptionsNo change
- Sec. 11Leverage requirementsNo change
- Sec. 12ReportingNo change
- Sec. 13Revocation and suspension of licenses; cease and desist ordersNo change
- Sec. 14Examinations and investigationsNo change
- Sec. 15Injunctions and other ordersNo change
- Sec. 16Conflicts of interestNo change
- Sec. 17Removal or suspension of management officialsNo change
- Sec. 18Unlawful acts and omissions by officers, directors, employees, or agents; breach of fiduciary dutyNo change
- Sec. 19Penalties and forfeituresNo change
- Sec. 20Jurisdiction and service of processNo change
- Sec. 21Issuance and guarantee of trust certificatesNo change
- Sec. 22Periodic issuance of guarantees and trust certificatesNo change
- Sec. 23MiscellaneousNo change