South Hennepin News

WASHINGTON, D.C. – On May16, Rep. Dean Phillips (D-MN), alongside Sens. Van Hollen (D-MD) and Rubio (R-FL), and Reps. Blake Moore (R-UT), Chrissy Houlahan (D-PA), and Dusty Johnson (R-SD), introduced bipartisan, bicameral legislation to support small business owners who pursue an employee-owned business model. Their Employee Equity Investment Act (EEIA) reduces cost barriers small business owners currently face when transferring ownership to their employees, empowering them to preserve family legacies and community jobs – even after their retirement.

Nearly half of all private businesses are owned by individuals who are at or near retirement age, and together, those businesses employ more than 32 million workers across 2.9 million firms. Yet, fewer than 15% of owners who are expected to retire over the next decade have a succession plan in place. Many will sell their businesses to buyers in the mergers and acquisitions (M&A) market or close their doors, resulting in the loss of jobs and businesses across the country. By supporting the sale of businesses to employees, the Employee Equity Investment Act would return a greater share of American profits to American workers.

“My family taught me that business is a means to an end; and that end is ensuring success is shared with the people and communities who help create it,” said Rep. Phillips. “Over the coming years, millions of small business owners will reach retirement age and sell to competitors or other buyers in the mergers and acquisitions market - which often results in jobs leaving the communities that rely on them. Expanding opportunities for employee ownership will help keep businesses and jobs local, allow American workers to build wealth for their families, and result in more sustainable and resilient communities. Employee ownership is both good business and good for business."

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