Sioux Empire Today

U.S. Representatives Dusty Johnson, Blake Moore, Lori Trahan, and Bill Foster have introduced the American Ownership and Resilience Act in Washington, D.C. The legislation seeks to expand employee ownership through Employee Stock Ownership Plans (ESOPs) to ensure companies remain under American control. This initiative aims to protect jobs and communities while countering efforts by foreign entities like China from acquiring strategic U.S. businesses.

"American businesses are the backbone of our economy," stated Johnson. "The American Ownership and Resilience Act will keep these companies local, strong, and American-owned."

Moore highlighted the upcoming significant transfer of assets as over two million business owners approach retirement. He emphasized that ESOPs provide a viable option to maintain domestic ownership amid increased global competition.

Ted Margarit from Paralign Capital Partners expressed support for the bill: "We seek to establish ESOP-investing as a credible asset class for investors...The American Ownership and Resilience Act will be instrumental in making this a reality."

Scott Sletten of JDS Industries shared his experience transitioning his family-owned business to ESOP ownership with assistance from Paralign Capital Partners: "I expect that the American Ownership and Resilience Act will support additional investment in creating more employee-owned companies."

Jack Moriarty of Lafayette Square Institute remarked on the generational business succession challenge: "The approaching wave...poses acute risks...the American Ownership and Resilience Act offers a bipartisan opportunity to bolster U.S. economic security."

The act proposes enabling private sector financing for U.S. business sales through ESOPs without taxpayer funds, equipping the Department of Commerce with an investment facility, and supporting Ownership Investment Companies (OICs) to facilitate capital access for ESOP sales.

This legislative effort is cosponsored by Representatives Moore, Trahan, Foster, alongside Senators Todd Young, Chris Van Hollen, Jerry Moran, and Tammy Baldwin who introduced companion legislation in the Senate.

The backdrop for this legislative push is an impending economic shift due to many privately held businesses being owned by individuals nearing retirement age. This situation presents potential risks such as job loss or company acquisitions by foreign buyers if not addressed.

China's active acquisition of U.S. companies poses threats including moving intellectual property overseas which could undermine national security according to proponents of the bill.

ESOPs are presented as beneficial alternatives providing greater productivity during downturns while aligning closely with community interests particularly in rural areas where they promote economic equity by keeping innovation within America despite existing financing challenges faced during transitions.

The American Ownership and Resilience Act aims at bridging these financial gaps encouraging private investments thus offering strategic alternatives against foreign acquisitions strengthening America's economic foundation through workforce investments.