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Are you ready to lead the USFWC’s mission to build a thriving ecosystem for worker cooperatives and their leaders? Run for the USFWC Board of Directors!

Nominations for the USFWC Board of Directors are now open. In 2023, USWFC members will elect five At-Large Directors. One of them could be you or someone from your workplace.

Know a great candidate? Recommend them! USFWC member organizations can recommend a candidate using this form.

Ready to run? Nominate yourself! Individuals can self-nominate by filling out this form.

For more information, including candidate and workplace eligibility, visit our nominations page.

On May 15th, Rep. Dean Phillips (D-MN) and Senator Van Hollen (D-MD) led the effort to introduce this bipartisan, bicameral legislation to reduce barriers to small business owners who are transferring ownership to worker co-ops and ESOPs.

In recent years, there has been an uptick in interest in conversions to worker co-ops and ESOPs. Nearly half of all private businesses are owned by individuals who are at or near retirement age, and together, those businesses employ more than 32 million workers across 2.9 million businesses. Fewer than 15% of owners who are expected to retire over the next decade have a succession plan in place, leading to loss of jobs and businesses because the business closes or is merged into a larger business that is not anchored in the community. The Employee Equity Investment Act (EEIA, HR3383, S1618) will preserve jobs and build wealth for workers by converting those businesses to worker ownership.

The EEIA would mobilize Small Business Investment Companies (SBICs) to reduce the burden on seller financing to create more worker co-ops and ESOPs by allowing a zero-subsidy, or zero interest, investments in businesses formed under one of these two business models. The vision of this bill is to double the number of U.S. employee owners over the next decade creating a more dynamically competitive, inclusive, and resilient American capitalism.

The program:

• creates a special type of SBIC called an Employee Equity Investment Company (EEIC) that requires 50% or more of their investments must be transactions that create new employee-owned businesses, and requires that those investments do not exert any control over the business they have invested in
• creates a training program for SBICs that are new to worker co-ops and ESOPs to become an EEIC
• requires the EEIC to work with an advisor with 5+ years experience of working with worker co-ops or ESOPs
• requires an annual report on this program
• affirms the Main Street Employee Ownership Act by creating an office of Employee Ownership within the Small Business Administration (SBA) to provide education, outreach, and technical assistance resources for conversions, as well as assist in conversions.
• Additionally, the EEIA requires reporting on this program as well as evaluation of barriers to access to procurement programs for employee owned businesses.

“My family taught me that business is a means to an end; and that end is ensuring success is shared with the people and communities who help create it,” said Rep. Phillips, whose great-grandfather, Jay Phillips, created one of the first employee profit sharing plans in the country in 1944. “Over the coming years, millions of small business owners will reach retirement age and sell to competitors or other buyers in the mergers and acquisitions market – which often results in jobs leaving the communities that rely on them. Expanding opportunities for employee ownership will help keep businesses and jobs in local communities, allow American workers to build wealth for their families, and result in more sustainable and resilient communities. Employee ownership is both good business and good for business.”

“American workers are the true power behind our economy. By investing in employee ownership, we’re investing in our workers and putting more of their hard-earned dollars back in their pockets, instead of sending U.S. profits overseas. This bipartisan bill will offer up-for-sale businesses the tools to transition to employee ownership – empowering workers and keeping jobs and opportunity here at home,” said Senator Van Hollen.

“Worker co-ops are often overlooked when it comes to financial products and business opportunities in the U.S., usually because government and financial institutions don’t have much familiarity with the model.” said USFWC Executive Director, Esteban Kelly. “It is exciting to envision a U.S. small business landscape that centralizes worker ownership and voice. We thank Rep. Phillips, Senator Van Hollen, and the bipartisan team of legislators who recognize the importance of building wealth for workers, saving jobs, and investing in small businesses that anchor our communities and make local economies strong.”

The EEIA is cosponsored by Sens. Chris Van Hollen (D-MD), Tammy Baldwin (D-WI), Todd Young (R-IN), Jeanne Shaheen (D-NH), Mike Braun (R-IN) and Marco Rubio (R-FL), and Reps. Blake Moore (R-UT-1), Chrissy Houlahan (D-PA-6), Jill Toduka (D-HI-2), Brian Fitzpatrick (R-PA-1), Mark Pocan (D-WI-2), Dan Meuser (R-PA-9) and Dusty Johnson (R-SD)

List of Small Business Investment Companies

Full EEIA text is available here.

The Economic Development Administration has opened up the funding opportunity for the Tech Hubs program. This is an opportunity for the cooperative development community to help to shape tech and manufacturing business development strategies across the country and access federal funding to do so. This post contains background information on the Tech Hubs program, the

Background:

Funding opportunity now open

On May 12, 2023, EDA published the Tech Hubs Phase 1 Notice of Funding Opportunity (NOFO) (PDF)—the first of two phases.

PHASE 1 – Strategy Development Grants (Deadline: August 15, 2023)
EDA will designate at least 20 Tech Hubs across the country and will separately award approximately $15 million in strategy development grants to accelerate the development of future Tech Hubs. The Tech Hubs designation will be a widely recognized indicator of a region’s potential for rapid technology-led economic growth. Strategy Development Grants may fund the following types of activities:

1. Developing a comprehensive regional technology strategy;
2. Identification of regional partnerships;
3. Assessments to determine regional needs and capabilities;
4. Development or updating of goals and strategies to implement an existing comprehensive regional plan;
5. Identification or implementation of planning, local zoning, and other changes to code, law, or policy necessary;
6. Development of plans for promoting broad-based economic growth, creating good paying jobs, assessing job quality, and helping students and workers gain the skills for, secure, and advance in good jobs and careers;
7. Hiring of the coalition’s Regional Innovation Officer to lead the overall effort.

The EDA is particularly interested in proposals that focus on the following areas:

• Supporting small and rural businesses
• Promoting diversity and inclusion in the tech sector
• Addressing workforce development needs

EDA will host an informational webinar on May 18 about the Tech Hubs Program Phase 1 NOFO. Click here to register for the webinar.

PHASE 2 (EDA expects to release the Phase 2 NOFO in Fall 2023.)
In Phase 2, EDA will make at least 5 implementation awards to designated EDA Tech Hubs. Only Tech Hubs that EDA designates during Phase 1 are eligible to apply for Phase 2.

Press release: Biden-Harris Administration Launches First Tech Hubs Funding Opportunity

Steps to engagement in the Tech Hubs program:

If you value the USFWC’s work to advocate for and elevate these opportunities, please consider donating to support our efforts.

On Tuesday, May 9, 2023, Governor Inslee signed into law SB 5096, expanding employee ownership in Washington State. This bipartisan legislation led by State Senator Mike Padden (R-Spokane) and Senate Majority Leader Jamie Pedersen (D-Seattle) is among the most ambitious state employee ownership legislation to date, and it passed both chambers unanimously with no opposition. The USFWC is proud to have supported this effort, driven by partners at Ownership America and including support along the way from the Northwest Cooperative Development Center, Project Equity, and the Employee Ownership Expansion Network. 

The act will create:

• the Washington Employee Ownership Program with the Washington Department of Commerce;
• an Employee Ownership Commission with seats appointed by the Governor and legislative leaders;
• a tax credit for feasibility studies;
• clarification that State Small Business Credit Initiative (SSBCI) funding for the State of Washington maybe be used to finance employee ownership use cases;
• a revolving loan fund to support the financing of conversions without a personal guarantee requirement – a troublesome issue cooperatives face in accessing the Small Business Administration (SBA)’s loan programs.

The Washington Employee Ownership program will convene a network of technical support and service providers, work with state agencies whose regulations and programs affect employee-owned businesses, partner with external service providers and organizations to make Washington State a fertile ground for employee ownership, and curate a service provider referral service. 

“SB 5096 builds upon the successes of like-minded initiatives in other states including Colorado, California, and Massachusetts, showing that the worker ownership movement is agile, is growing fast, and is learning even faster,” said USFWC Policy Director Mo Manklang. “Worker co-ops and ESOPs have clear support from legislators from across the political spectrum, across the country, in rural and urban geographies. This support illustrates what we know – worker ownership works. It builds wealth, creates opportunity for dedicated workers, creates avenues for leadership development and skill-building, and anchors businesses in their communities.” 

“This bipartisan legislation marks another significant milestone for the employee ownership movement, said Ownership America Founder and Executive Director Jack Moriarty. “By investing in public outreach and technical assistance, feasibility study incentives for multiple forms of employee ownership, and in addressing capital access issues, Washington is now well-positioned to grow an already impressive footprint of employee-owned businesses in the coming years.”

Co-Director of NWCDC, Dr. John McNamara comments, “This law puts Washington at the forefront of the movement towards worker ownership. SB 5096 will support building resilient local economies whether they are in Walla Walla or Seattle’s Central District. By supporting the ability of workers to control their economic destiny, Washington will be creating pathways to the next generation of ownership at a time when many small business owners are facing retirement without a clear succession plan.”

Read the full bill here

Watch the bill signing here

Haga clic aquí para leer esta entrada en español 

Our Member Councils and Peer Networks are shaping the future of the worker co-op movement in the U.S. through offers and needs markets, collective education & learning and political advocacy for a worker-centered economy.  Here are the highlights for this month from some of our Councils & Networks:

• Union Co-ops Council – Union co-ops were front and center at the first Building Worker Power conference hosted in Amherst this March, which featured powerful workshops, storytelling, projects, strategies, and visioning for where our shared labor movement is going. USFWC members organized the conference and led sessions, including the Wellspring Cooperative, Cooperation Jackson, Worx Printing, White Electric Coffee, Collective Copies, among many others.
  At the upcoming Union Co-ops Council meeting, we’ll hear from a collaboration of cooperative developers, labor advocates, researchers, and racial justice practitioners that just launched a new set of open-source online tools for anti-racist union co-op development, which centers the importance of our inner and collective work toward anti-oppression with specific activities and tools. Sign up here! (Public UCC meetings occur on the 2nd Fridays of even months at 1pm ET.)
• Policy & Advocacy Council – The Policy and Advocacy Council hosted a deep dive conversation on State Advocacy initiatives, with speakers from NY, MA, WA, PA, and CA. Next month, the council will dig into our advocacy toolkit – members can sign up here to attend.
• International Council – The International Council held its second official meeting of its Executive Committee and is looking forward to recruiting members at the Spring Membership Meeting. Register here for the meeting.
  During the second half of 2023, the council will be hosting a short webinar series about the international cooperative ecosystem. Be on the lookout for an invitation in future member emails!
• Racial & Economic Justice Council – Later this year, we will be re-launching the Racial & Economic Justice Council. This will be a space for members to come together and share issues they are working on and organize with each other – learn more at the USFWC Spring Member Meeting May 24th.
• Movimiento de Inmigrantes en las Cooperativas – We are re-launching MIC this year! If you are interested in joining Movimiento para Immigrantes Cooperativistas, a leadership and movement building space for Spanish speaking immigrant worker-owners, please email us at membership@usworker.coop and register here for the Spring Member Meeting on May 24th.

• Co-op Booksellers Peer Network – The co-op booksellers chat and learn from each other on the first Friday of each month at 4pm ET. Involved in a co-op bookstore or want to start one? Join us!
• Tech Worker Co-ops Peer Network – The Tech Peer Network is adopting an updated template agenda to focus some time every meeting on advocacy, emerging issues in the field, and supporting each other’s work. It’s a great time for new tech worker co-ops to join!
• Federation Partners Peer Network – At the Federation Partners next meeting on Thursday April 27th, the group will be focusing on cooperative ecosystem assessments, or the elements for thriving co-op development.
• Co-op Academies Peer Network – Stay tuned! The next co-op academies meeting will be on Monday May 22nd at 3:30pm ET.

Members, be sure to register for our USFWC Virtual Spring Member Meeting May 24th to hear more from your Member Councils and help shape their future work!

In this video, the USFWC’s 2022-2023 Worker Owner State Advocacy Fellows share on their research and projects for the year, in which worker-owners from across the U.S. surveyed fellow cooperators about challenges and needs of worker co-ops to share with their state legislators.

We also heard from USFWC Policy Director Mo Manklang and Government Relations Manager Aaliyah Nedd of the National Cooperative Business Association on recent policy wins and upcoming opportunities to support. Learn more about our Policy & Advocacy for worker co-op businesses here.

More from the US Federation of Worker Co-ops

• Register for our upcoming events
• Sign up for our monthly newsletter
• Sustain our work
• Find a worker co-op
• #ShopCoop
• Become a member 

The USFWC is proud to support #SBDCDay and the growing network of Small Business Development Centers (SBDCs) who are providing important education and and technical assistance regarding worker cooperatives and Employee Stock Ownership Plans.

In 2018, the Main Street Employee Ownership Act directed the Small Business Development Centers across the country to provide training and education on employee ownership options. The USFWC continues to work with members to increase awareness of worker cooperatives within SBDCs.

“The work of champions such as Frank Cetera of the Onondaga Small Business Development Center in Syracuse, NY and Leyanis Diaz at the Temple SBDC in Philadelphia has helped to worker co-ops stay open, especially during the COVID-19 pandemic. They provided crucial information and support in accessing resources in a time of great need for all businesses.” said Mo Manklang, Policy Director at the U.S. Federation of Worker Cooperatives. “In particular, Frank’s work in leading the charge of SBDC education and peer learning regarding worker ownership is critical to ensuring that our cooperative businesses have access to supports that are offered through SBDCs. The work of these on-the-ground consultants to help small businesses form, grow, and thrive is a hugely untapped resource for business owners across the country. As we fight for cooperatives to have access to the same SBA resources as all other small businesses, it is heartening to know and work with these experts to expand their knowledge of worker co-ops.”

As small business owners navigate an ever-changing landscape, Small Business Development Centers (SBDCs) continue to support and elevate their clients through innovative at-cost training programs and free advising strategies. Nearly 1,000 SBDCs can be found across the United States and its territories, serving clients virtually and from their centers in host institutions like universities and chambers – this network can be a vital avenue for growing the worker co-op movement.

According to the most recent Chrisman Survey, which collected data from SBDC clients in 2020-2021, America’s SBDCs provide measurable economic results. Nationwide SBDCs helped generate; 85,094 jobs, $10.1 billion in sales growth; $7.7 billion in capital investments; and started 14,487 new businesses, proving that SBDCs are leaders in job creation and economic development.

“Through adversity, we strengthen and grow, and nothing could be truer for the SBDC network and its thousands of clients this past year,” said Charles “Tee” Rowe, President & CEO of
America’s SBDC. “This SBDC Day, we are celebrating the SBDC network’s reimagined approach to doing business and its direct positive impact on Main Streets all across America.”

• To learn more about SBDC Day and its SBDC Ambassadors, visit http://www.americassbdc.org/SBDCDay.
• To join the conversation online, follow the hashtag #SBDCDAY.
• Find Your Nearest SBDC