Illinois Bill Would Create State Employee Ownership Investment Fund

The Employee Ownership Development Act (Illinois House Bill 4955), introduced by Democratic Representative Will Guzzardi, would direct the state treasurer to segregate up to 5% of the state’s investment portfolio into an “Employee Ownership Development Account.” The funds would be made available to companies that are majority employee-owned through ESOPs, employee ownership trusts, or worker cooperatives. Funds would be invested through “employee ownership development firms,” which are capital providers with a track record of providing capital to employee ownership companies. The funds must invest at least 1.5 times the amount of capital provided by the state. Funds can be used for ownership transitions or expanding existing employee ownership companies.