Roadmap Action Area: ADVANCE POLICY

Align government tools with EO’s economic and social value

Employee ownership thrives where policy aligns incentives with practice. 

The Roadmap outlines the most important near-term federal and state levers:

• Aligning SBIC and CDFI programs with EO
  This brings low-cost, flexible capital directly into transition financing.
• Expanding SBA eligibility and lender participation
  SBA-backed credit is key for EO transitions but restricted to majority ESOPs (Employee Stock Ownership Plans), leaving out many smaller firms that fall below the typical 40–50 employee threshold for ESOPs. 
• Passing the American Ownership and Resilience Act (AORA)
  AORA would dramatically expand access to federal capital tools and crowd in private capital.
• Advancing Department of Labor (DOL) valuation and fiduciary clarity
  Reducing regulatory ambiguity encourages more funds, lenders and investors to engage.
• Strengthening and replicating state EO programs.
  Many states—including Colorado, Michigan, Iowa, California and others—offer models for expanding awareness, easing barriers, providing tax incentives, addressing collateral and guarantee gaps, and advancing procurement and business retention strategies.

Policy is not simply a supporting pillar—it is a multiplier that accelerates every other area of the Roadmap’s Compass.