The bill modifies requirements for an existing loan program (program) created to assist transitions of businesses to employee-owned businesses. The bill repeals statutory eligibility requirements and requires the office of economic development (office) to establish eligibility criteria for the program. The criteria must include an annual gross revenues limitation for participation in the program for businesses, which amount may be set at up to or less than $50 million and establish requirements for the number of employees who will be offered the option to participate in the employee-ownership opportunity.
The bill also amends the requirements for the loans. It allows a loan to be used toward the purchase of the business by the employees. The bills repeals requirements related to the size of the loans and how the loans must be held and requires the office to establish requirements for the terms of the loans pursuant to existing statutory requirements.
Under the current statute, the program is repealed effective July 1, 2022. The bill extends the program through July 1, 2025.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)