HARRISBURG — Legislation sponsored by Sen. Frank Farry (R-6) to help Pennsylvania businesses transition to employee ownership and preserve jobs within commonwealth communities was approved by the Senate this week.
Senate Bill 478 would establish the state Office of Employee Ownership within the Department of Community and Economic Development (DCED) and create an employee ownership advocate to lead efforts to promote employee ownership, provide education and outreach, and connect businesses with available resources. It would also establish an Employee Ownership Advisory Board to advise DCED and the General Assembly on policies and programs supporting employee-owned businesses.
“Our great state has thousands of small and family-owned businesses that are critical to our communities and local economies,” said Farry. “As business owners consider retirement or other transitions, employee ownership can provide another path to keep those businesses operating, protecting good-paying jobs and giving employees an opportunity to have a stake in the companies where they work.”
The bill enables the Office of Employee Ownership to provide technical and financial assistance through low-interest loans of up to $35,000 to assist with the acquisition or conversion of eligible small businesses to the employee ownership model.
“This legislation is about keeping businesses rooted in Pennsylvania and providing workers a greater opportunity to share in their success,” said Farry.
Senate Bill 478 has received bipartisan support and now heads to the House of Representatives for consideration.