Small business owners are getting a new incentive to sell to their employees

• Employee-owned businesses are now easier to form, thanks to the defense bill President Trump signed into law this month.
• Democratic Senator Kirsten Gillibrand wrote the original provision that allows the Small Business Administration to loan money to employee-owned businesses that wish to buy out retiring small business owners.
• Small businesses are sold to their managers or workers using one of three methods: an employee stock ownership plan or ESOP, a worker cooperative, or an employee trust.
• This move is estimated to double or even triple the growth of employee-owned companies.

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The federal government just made it a lot easier to form an employee-owned business.

In an increasingly rare example of bipartisan cooperation, President Donald Trump on Aug. 13 signed a defense bill into law that included a popular provision that allows the Small Business Administration to straightforwardly loan money to employee-owned businesses that wish to buy out retiring small business owners.

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