119-HR-5778 Journalist Public Summary
119 · HR 5778 Improving SBA Engagement on Employee Ownership Act
H.R. 5778 would have the Small Business Administration step up outreach, education, and interagency coordination on employee ownership and cooperatives, extend SBIC outreach to investors, and implement an existing SBA promotion program within 180 days of enactment; it advanced from the House Small Business Committee on November 18, 2025, by a 27–0 vote.
Headline Summary
A bipartisan House bill would require the Small Business Administration (SBA) to boost outreach and coordination on employee ownership and cooperatives, and to roll out a related SBA program within 180 days of becoming law.
What It Does
The bill directs the SBA to actively participate in federal working groups on cooperatives and employee ownership, expand its Small Business Investment Company (SBIC) outreach to include investors and limited partners, and carry out the Small Business Employee Ownership and Cooperatives Promotion Program within 180 days of enactment. In plain terms: it tells SBA to show up, spread the word, and help more small businesses learn how to transition to employee ownership models like ESOPs and co-ops.
- Focuses on outreach, education, and coordination rather than creating new grant or tax programs.
- Builds on a 2019 law by specifying that SBA use its existing employee ownership and cooperatives promotion program to deliver assistance.
- Aims to make it easier for owners (especially near retirement) to learn about selling to employees and for workers to understand ownership options.
Who’s For It
- Lead sponsors: Rep. LaMonica McIver (D‑NJ), Rep. Robert Bresnahan (R‑PA), and Rep. Nydia Velázquez (D‑NY).
- House Small Business Committee members of both parties, as shown by the 27–0 committee vote on November 18, 2025.
- Supporters say wider SBA outreach can help with small‑business succession, keep local jobs in place, and broaden wealth‑building opportunities for employees.
Who’s Against It
- No formal opposition was recorded in the committee vote (27–0).
- Potential concerns some may raise: the mandate could strain SBA resources or duplicate existing efforts; some limited‑government advocates may prefer the private sector lead such education; others may question whether broader SBIC outreach to investors is necessary.
What’s Next
As of November 19, 2025, the bill has been ordered reported by the House Small Business Committee (November 18, 2025). Next, it can be scheduled for a vote by the full House. If it passes, it moves to the Senate; if both chambers pass it, it goes to the President for signature or veto.
Discussion