Employee Equity Investment Act of 2023

The Employee Equity Investment Act of 2023 creates a new program to provide financial leverage to companies that invest in small businesses through employee stock ownership plans (ESOPs) or worker-owned cooperatives. The bill sets specific requirements including minimum investment percentages (75% in covered investments, 50% in ESOP-related investments), the need for independent trustees to evaluate transactions, and detailed demographic reporting on plan participants. It also establishes a Protege EEIC program to help new investment companies with guidance from experienced managers, creates an Office of Employee Ownership for education and technical assistance, and modifies procurement rules to help employee-owned businesses access government contracts. The program has a sunset provision, ending 20 years after the first license is approved.