[Congressional Record Volume 171, Number 69 (Thursday, April 24, 2025)]
[Extensions of Remarks]
[Page E337]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     INTRODUCTION OF THE ESOP FUNDING FOR SBA POSITION ACT OF 2025

                                 ______
                                 

                              HON. ED CASE

                               of hawaii

                    in the house of representatives

                        Thursday, April 24, 2025

  Mr. CASE. Mr. Speaker, I rise today to introduce legislation to 
ensure that the U.S. Small Business Administration (SBA) fully supports 
our small businesses establish and maintain employee stock ownership 
plans (ESOPs).
  ESOPs offer a powerful way to ensure employees become stakeholders 
and help run the business they've built. This wealth-generating and 
retirement plan approach creates a more engaged and productive 
workforce by aligning employee interests with a company's success. This 
model promotes a stronger sense of ownership and community and keeps 
investment and wealth in local economies, benefiting workers and their 
families.
  In Hawaii, we've seen firsthand the benefits of ESOPs. Hawaii is home 
to the second-oldest ESOP chapter in the Nation, underscoring the 
success and importance of employee-owned businesses in our state. From 
that humble beginning, the Hawaii Chapter of the ESOP Association now 
represents over 45 ESOP companies and professional service providers in 
the state, which is a significant number considering our state's size. 
These businesses, with the help of ESOPs, have continued to thrive, 
contributing to the local economy in ways that benefit families and the 
broader community.
  Despite this strong record of ESOPs in Hawaii and throughout the 
United States, many small businesses face challenges in navigating the 
complex process of establishing and maintaining an ESOP. They often 
lack expertise in tax considerations, regulatory compliance, stock 
valuation, and securing the necessary funding.
  There is also a growing concern with the ``Silver Tsunami''--the 
impending wave of baby boomer business owners looking for ways to 
transfer ownership. As these owners retire, many are considering ESOPs, 
but the complexity of setting them up may discourage some from pursuing 
this option.
  To help overcome these challenges, my ESOP Funding for SBA Position 
Act of 2025 will create a position within the SBA to guide small 
businesses through the process of setting up ESOPs, providing essential 
support on tax considerations, compliance, stock valuation and securing 
funding. This new SBA position will provide businesses with the 
resources they need to navigate the complexities of employee ownership.
  This bipartisan bill, which I have introduced with my colleague 
Congressman Robert Bresnahan, will help empower small businesses 
nationwide. I urge my colleagues to support this important initiative 
that will make employee ownership more accessible, foster stronger 
communities and keep business wealth where it belongs--locally.
  Mahalo.

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