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

The USFWC invites its members and community to provide comment on two important funding opportunities through the federal government: The Tech Hubs Program and the Recompetes Pilot Program.

Tech Hubs Program

Last year, cooperatives were named as an important part of the federal government’s Regional Technology and Innovation Hub (Tech Hubs) program, authorized through the Chips and Science Act (P.L. 117-167). The wheels for this program are now in motion, and the Economic Development Administration (EDA) announced a Request for Information to inform the planning and design of the Tech Hubs program.

The Tech Hubs program is an economic development initiative to drive technology- and innovation-centric growth that creates good jobs for American workers. Cooperative development centers and associations, and CDFIs  are named as eligible partners to drive regional strategies to support this growth. The Tech Hubs program is an opportunity to develop and expand cooperatives, leveraging federal dollars specifically for technology and innovation cooperatives. 

Grants or cooperative agreements will be awarded to regional hubs for the implementation of innovation strategies under four different categories: workforce development, business and entrepreneur development, technology development and maturation, and infrastructure-related activities. 

Read more about the Chips and Science Act here

Recompetes program

The Distressed Area Recompete Pilot Program, also authorized through the Chips and Science Act, is an economic development initiative that will provide grant funding to distressed communities across the country to create, and connect workers to, good jobs and support long-term comprehensive economic development by helping to reduce the high, prime-age (25 to 54 years of age) employment gap.

Congress appropriated EDA $200 million for the program, allowing the EDA to target persistently economically distressed areas to support long-term, comprehensive and sustainable economic development and job creation/placement and award grants to support development or implementation of a Recompete Plan.

The EDA is requesting feedback on how to structure a program that most effectively builds capacity, creates jobs and addresses challenges in communities grappling with persistent economic distress and high prime-age unemployment;

• identifying metrics to assess the success of the Recompete Pilot Program;
• designing a competitive, inclusive and accessible grant funding selection process; and
• identifying best practices and evidence-based research that could inform how to most effectively support persistently economically distressed areas.

Here’s how you can get involved:

• Send a comment letter expressing your support for the cooperative community as a prominent part of the Tech Hubs Strategy. You can either send your own comments or look out for the USFWC’s template letter, which will be shared on Monday 3/13 (this page will be updated). Feedback for this RFI is due by 5 pm ET on March 16 and can be submitted via email to Eric Smith, Director, Office of Innovation and Entrepreneurship, at techhubs@eda.gov.
• Send a comment letter expressing your support for the cooperative community as a prominent part of the Recompetes Pilot Program. You can either send your own comments or look out for the USFWC’s template letter, which will be shared on Monday 3/13 (this page will be updated). Responses are due by 5 p.m. Eastern Time on March 27, 2023, submitted via email to Recompete@eda.gov. 
• Let us know that you submitted a letter for either or both requests. Email us at policy@usworker.coop

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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 – At the February meeting, the UCC shared updates, announcements, ideas, and heard a presentation from Sam Marvin and Dennis Olson from the United Food and Commercial Workers (UFCW) union on their support for developing unionized worker co-op cannabis dispensaries in Rhode Island.
• Policy & Advocacy Council – March 1st we hosted our first Policy Pulse of the year where USFWC Worker Owner State Advocacy Fellows shared about the projects they have been working on to visibilize current challenges worker cooperatives are facing and articulate needs from the field to lawmakers in their home states. We were also joined by Aaliyah Nedd, government relations manager at NCBA CLUSA who shared the recent legislative wins, active bills and upcoming opportunities to support federal and state investment in the worker co-op sector; watch the recording here!
• International Council – The IC’s executive committee is planning a series of webinars for cooperators who want to learn more about international movements and organizations. This council will be recruiting members to help guide the direction of this council at the Spring USFWC Member Meeting, May 24th.
• 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 the MIC! Movimiento para Immigrantes Cooperativistas has been a dormant space and we are actively working to re-engage members and identify pressing issues to organize around. We will be holding a breakout discussion about this at the Spring Member Meeting on May 24th.

• Co-op Booksellers Peer Network – At the co-op booksellers monthly meeting, they discussed some of the challenges of their tight margin industry and relying on unpaid labor to keep the co-ops operational.
• Tech Worker Co-ops Peer Network – The Tech Worker Co-op Peer Network has gained some new and returning attendees as we start up again after a break in 2022. The group has been engaging with the international tech co-op community through a new international federation for tech worker co-ops called Patio, and sharing resources for connecting with clients.
• Federation Partners Peer Network – At the quarterly meeting, the Federation Partners discussed the upcoming State of the Sector worker co-op census and plans for data sharing with the USFWC.
• Co-op Academies Peer Network – For their second USFWC meeting, the co-op academies did a resource exchange and discussed strategies for pre- and post-academy engagement for participants.

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!

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The USFWC Co-op Clinic invites you to attend our half-day Virtual Summit: a space for deepening education and growing capacity for worker-owners, cooperatives, and support organizations.

This is an opportunity to connect with other cooperatives across the country this spring, and meet the Co-op clinic team and the greater USFWC community. The summit will be hosted via Zoom and all sessions will be accessible in English and Spanish. Session recordings with closed captions will be provided to registered participants.

Skill up! Co-op Clinic Virtual Summit
Thursday, May 11th, 2023 from 1:00 – 4:30 pm ET

Come grow your knowledge and skills in one of three 2-hour, 2-part workshop tracks. Workshop tracks include:

Intro to Financial Literacy
A dive into tools and best practices for making your cooperative financially sustainable.
Working through Conflict
A session focusing on conflict: why it happens, and best practices for working through it in your cooperative.
Providing Workers Benefits
A discussion of strategies and considerations for providing worker benefits for cooperatives. In addition, an opportunity to learn more about the USFWC worker benefits program!

Join Us
If you’re new to cooperativism, recently joined your cooperative, or looking to deepen your skills in finance, conflict mediation, or providing worker benefits to your cooperative, this summit is for you!

How to Register
Registration coming soon.

Is there a cost to attend this event?
We want this to be accessible to all, and we also hope to make this a sustainable event. The suggested donation is $25.00 – $35.00 per person. Your donation will go towards covering interpretation, facilitation, and coordination costs. We invite you to give what you are able to support and enjoy this event!

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:

New year, new me…eting times! See below for the schedule of recurring Member Council and Peer Network meetings. 

• The Policy and Advocacy Council is switching to one 90 minute meeting per month, at 2pm ET / 1pm CT / 12pm MT / 11am PT on the first Thursday of the month. 
• The Union Co-ops Council will continue meeting at 1pm ET / 12pm CT / 11am MT / 10am PT on the 2nd Friday on even months. At the February call, we’ll hear from Glitter Bean Cafe, a queer-centric unionized worker co-op in Halifax that arose as an alternative to working in an unfair work environment under private ownership.

• Federation Partners will be meeting quarterly on the last Thursday of January*, April, July, and October at 3:30pm ET / 2:30pm CT / 1:30pm MT / 12:30pm PT. (*The January meeting will be on Thursday, February 2nd.)
• The new Co-op Academies peer network will also be meeting quarterly on the last Monday of February, May, August, and November at 3:30pm ET / 2:30pm CT / 1:30pm MT / 12:30pm PT. 
• Cooperative Booksellers will now be meeting on the first Fridays of each month at 4pm ET / 3pm CT / 2pm MT / 1pm PT. 
• Tech Worker Co-ops will continue meeting on the second Wednesdays of each month at 4pm ET / 3pm CT / 2pm MT / 1pm PT. 

Stay tuned for announcements about getting involved with our other Member Councils and Peer Networks as they re-launch and come online! 

The USFWC applauds Congress and President Biden on passing the Worker Ownership and Readiness and Knowledge Act, co-sponsored by Senator Sanders (D-VT) and Senator Moran (R-KS).

The legislation appropriates $50 million over five years to create the Employee Ownership Initiative within the Department of Labor to promote employee ownership, by supporting new and existing state employee ownership programs, including:

• Federal grants toward state employee ownership programs that provide education and outreach about the possibilities and benefits of employee ownership and business succession planning.
• Funding projects to gather data and and information about state employee ownership programs
• Acting as a clearinghouse on best practices within employee ownership and disseminating that information

The Employee Ownership Initiative is the first federal worker ownership grant program from the Department of Labor.

Important notes about the Employee Ownership Initiative:

• Will require the Secretary to consult with the Department of Treasury.
• Must be established within 180 days of the enactment of the omnibus bill.
• Includes education and outreach regarding financial education, employee teams, open-book management, and seeking greater employee input.
• Includes technical assistance for conversions, including feasibility studies.
• Training entities to apply for funding for the above uses.
• Provides for the development and fostering of networks of employee-owned companies.
• Begins in fiscal year 2025, with grant caps per recipient starting at $300,000 in 2025 up to $439,200 in 2029, and an appropriation of $4 million in 2025 to $16 million in 2029.
• Requires recipients to submit an annual report describing grant uses.
• Requires that the Secretary submit a report to congress on progress related to employee ownership, including costs and benefits of the program.
• Includes funding starting in 2024 to administer the program.

“This is one of the most consequential pieces of legislation supporting ESOPs in decades,” said Jim Bonham, President and CEO of The ESOP Association. “…We very much look forward to a strong working partnership with DOL and Treasury to develop these new regulations once the bill becomes law.”

“The provisions included in the omnibus are the clearest signal yet that Congress is committed to strengthening employee ownership in America, and doing so in a cooperative, bipartisan way,” Bonham said. “With this legislation, The ESOP Association has achieved a major portion of our longstanding policy agenda in Washington. While there is still much work to be done to secure the future of employee ownership, the wins in this bill are crucial to our efforts. We sincerely thank all our champions in Congress who support ESOPs and employee ownership, and who worked so diligently to help millions of American employee owners.”

“The WORK Act provisions speak loudly – Now it’s clear how Congress is invested in growing worker ownership in the US.” said Esteban Kelly, Executive Director of the U.S. Federation of Worker Cooperatives. “Strong bipartisan support of this legislation shows that our country’s leadership recognizes worker cooperatives and ESOPs as an important tool to build wealth and skills for entrepreneurs. It also ensures more longevity for businesses that are rooted in and reso our communities. We are excited to work with the Department of Labor to implement the WORK Act and we thank our champions Sen. Sanders and Sen. Moran who drove this win home for North American business owners.”

The Employee Ownership Initiative will create major opportunities for state-driven worker ownership education, outreach, and support. The USFWC will keep our community up-to-date on developments and opportunities to advocate.

Read more on the ESOP Association website 

Coverage of the omnibus bill on Roll Call

WORK Act excerpt of full bill text

Keep up with the USFWC’s advocacy work – sign up for email newsletters here

Become a member today and join the USFWC’s Policy and Advocacy member council

Questions? Email us at policy@usworker.coop.

Para leer esta entrada en español haga clic aquí

It’s a historic first for the national grassroots membership organization for worker cooperatives

The U.S. Federation of Worker Cooperatives is beginning 2023 having reached a new milestone: for the first time in our history, all members of our Board of Directors are people of color.

We held our first board meeting of 2023 this week but the breakthrough came when the all-POC board was sworn in on Friday, November 18th.

In that meeting, four new regional representatives took their seats, joining four continuing at-large representatives, and the non-voting, ex-officio seat reserved for the Executive Director. Additionally, At-Large Representative Mavery Davis was appointed after Representative Marina Maldonado stepped down.

The new representatives are:

• Kimberly Britt
  ChiFresh Kitchen, Northern Regional Representative
• Beatriz Ordaz
  Voces de Nashville, Southern Regional Representative
• Dominique Pearson
  Philadelphia Area Cooperative Alliance, Western Regional Representative [appointed]
• Diana Perez
  Radiate Consulting NY, Eastern Regional Representative
• Mavery Davis
  New Economy Works WV, Also a member of the Seed Commons Network, At-Large Representative (appointed)

Almost half of all worker-owners are people of color, according to the most recent State of the Sector report. On our board, 40% of members are Black while about 60% are latinx of different backgrounds and ethnicities.

The new board makeup reflects the USFWC’s commitment to pursue economic justice using cooperative tools that build Black and brown power through democratic worker ownership.

In 2004, our first board of directors recognized the potential of worker ownership to be an engine for Black and brown communities to create economic democracy coupled with racial justice.

Since then, we have invested in strategies that break down barriers to Black and brown communities accessing worker ownership. That has included increasing financial support for POC-led cooperatives as well as creating opportunities for leadership development and growing our members’ capacity to govern.

Get to know the members of the USFWC’s Board of Directors here.

The federal government is currently updating regulations for programs across several departments, including a few which address access to financing for cooperatives. The USFWC has worked with partners to articulate and vet responses to these updates to ensure co-ops have continued and expanded access to financial options.

There’s still one opportunity left for advocacy this year – we ask you to submit comment and tell the Small Business Administration to ensure co-ops can access their loan programs. 

SBA has invited comment on a proposed rule update on SBA business loan programs which would allow borrowers to use 7(a) loans all or part of a business.

However, the proposed rule fails to address SBA’s personal or equity guarantee requirement within 7(a) lending programs. SBA requires a “personal guarantee” from an owner with a 20 percent stake in the business to receive the small business loan guarantee.

This keeps co-ops from receiving guaranteed loans in the same manner that standard small businesses can. In the cooperative business model, no member typically owns more than a 20 percent stake in the business, meaning the personal guarantee effectively bars cooperatives from accessing this program despite being explicitly listed as an eligible entity. For more information on the personal guarantee, click here.

Here are the two important actions to complete by December 27:

1. Sign on to this comment letter as a supporter of removing SBA’s personal guarantee requirement
2. Submit your own comment letter using this template as a supporter of removing SBA’s personal guarantee requirement (yes, doing both helps!)

A few minutes of your time can make a huge difference in making sure co-ops have access to financing.

If you have any questions, email Aaliyah Nedd, NCBA CLUSA Government Relations Manager at anedd@ncba.coop or Mo Manklang, USFWC Policy Director at mo@usworker.coop.

Spread the word

Share the following or retweet the USFWC’s post:

Co-ops need financing just like any other small businesses – tell the @SBAgov and @USTreasury to ensure their programs serve ALL #smallbiz, including #coops by Dec 19 https://www.usworker.coop/blog/tell-sba-to-support-co-ops-through-their-loan-guarantee-programs/ 

For 12 years, Anna provided balanced leadership to the USFWC Board of Directors

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If leadership styles were animals, Anna Boyer’s would be a bear – analytical, methodical, careful and pragmatic.

It’s a leadership style that often goes unnoticed. But on the U.S. Federation of Worker Cooperatives’ Board of Directors, Anna brought balance. She provided grounding to the lofty ideas of the visionaries (eagles), and forward-movement to the patient community-builders (deer).

Anna Boyer’s leadership on the USFWC board ended in November, after her 12 years of service made her the USFWC’s longest-serving board member. Her term as Southern regional representative expired and she was ineligible to run again due to term limits in USFWC bylaws.

For 12 years, the balance that Anna brought to the USFWC board kept the governing body running smoothly and better able to focus on the needs of its members.

Ricardo Nuñez, board president, says, “Anna brought diligence that kept the board focused on the USFWC’s mission: serving worker cooperatives and the people who make this visionary form of organizing our labor real.”

“She had a keen eye toward finances. She translated balance sheets, profit and loss statements, and other financial documents to the rest of the board. She was also deeply knowledgeable about the bylaws and processes of the board. She could easily advise us on the powers we did, and did not have, at our disposal. That helped get us out of sticky process situations so we could focus on making informed, appropriate decisions to best serve our members.”

“The Federation is a stronger organization because of Anna,” says Ricardo. “We should acknowledge all of the invisible work she has done over a dozen years to help us, as a community and a movement, get to this point.”

Anna Boyer holds up a certificate of appreciation. The USFWC board recognized Anna for her service at the Fall Membership Meeting, which took place during this year’s Worker Co-op Conference in Philadelphia.

The Board of Directors took the opportunity to acknowledge Anna at the USFWC’s Annual Membership Meeting this Fall. Ricardo and former board member Hilary Johnson presented Anna with a framed certificate of appreciation signed by the board.

“As a board member, I was honored to serve along Anna for 6 years,” Ricardo says. “She was truly an inspiration to me and others with the dedication, diligence, and spirit she brought to the board.”

Anna Boyer joined the board of directors in 2011 as the Southern regional representative. She has also served as the board secretary and treasurer.

Anna represented member co-op C4 Tech and Design in New Orleans, LA. C4 provides web design, IT, and computer repair services to local residents, small to medium sized businesses, and nonprofits. Anna joined C4 in 2008.

Prior to working at C4, Anna worked as a movie theater concession salesperson, mail clerk, landscape maintainer, conservation biologist, insurance consultant, union steward, and telephone system programmer.

The USFWC board and staff are grateful to Anna Boyer for her service and wish her the very best in her future roles.

Update: The Senate and House have passed the Consolidated Appropriations Act of 2023, which will be signed into law soon!

The Senate is taking steps toward passing a nearly $1.7 trillion omnibus spending package (Consolidated Appropriations Act of 2023) needed before Christmas Eve to avert a partial government shutdown. This bill includes a huge victory for worker ownership through the Worker Ownership and Readiness and Knowledge Act, co-sponsored by Senator Sanders (D-VT) and Senator Moran (R-KS). 

The legislation appropriates $50 million over five years to create the Employee Ownership Initiative within the Department of Labor to promote employee ownership, by supporting new and existing state employee ownership programs, including:

• Federal grants toward state employee ownership programs that provide education and outreach about the possibilities and benefits of employee ownership and business succession planning.
• Funding projects to gather data and and information about state employee ownership programs
• Acting as a clearinghouse on best practices within employee ownership and disseminating that information

The Employee Ownership Initiative, if passed, would be the first federal worker ownership grant program from the Department of Labor. 

Important notes about the Employee Ownership Initiative:

• Will require the Secretary to consult with the Department of Treasury.
• Must be established within 180 days of the enactment of the omnibus bill.
• Includes education and outreach regarding financial education, employee teams, open-book management, and seeking greater employee input.
• Includes technical assistance for conversions, including feasibility studies.
• Training entities to apply for funding for the above uses.
• Provides for the development and fostering of networks of employee-owned companies.
• Begins in fiscal year 2025, with grant caps per recipient starting at $300,000 in 2025 up to $439,200 in 2029, and an appropriation of $4 million in 2025 to $16 million in 2029.
• Requires recipients to submit an annual report describing grant uses.
• Requires that the Secretary submit a report to congress on progress related to employee ownership, including costs and benefits of the program.
• Includes funding starting in 2024 to administer the program.

This bill is expected to move swiftly through Congress this week, through the Senate and then through the House. If passed, the Employee Ownership Initiative would create major opportunities for state-driven worker ownership education, outreach, and support. The USFWC will keep our community up-to-date on developments and opportunities to advocate. 

Read more on the ESOP Association website 

Coverage of the omnibus bill on Roll Call

WORK Act excerpt of full bill text

Keep up with the USFWC’s advocacy work – sign up for email newsletters here

Become a member today and join the USFWC’s Policy and Advocacy member council

Questions? Email us at policy@usworker.coop.