US SB1645

Summary of S. 1645 - American Ownership and Resilience Act

• Establishes a domestic ownership investment facility within the Department of Commerce to provide government-guaranteed debentures (leverage) to licensed "ownership investment companies," with a maximum of $5 billion per fiscal year in total leverage.

• Creates ownership investment companies (OICs) that must invest 100% of their capital in "covered investments"—financing transactions that result in employee stock ownership plans (ESOPs) or worker-owned cooperatives holding majority ownership of businesses.

• Sets minimum private capital requirements of $10 million for licensees, with leverage limits of up to 100% of private capital or $500 million maximum per company ($1 billion for commonly controlled companies).

• Includes worker protections requiring independent trustees and fairness opinions for ESOP transactions, prohibiting employee financing of ownership purchases, and mandating that sale proceeds be distributed as if all shares were fully allocated to participants.

• Establishes a "Protégé OIC" program for emerging managers with limited ESOP investment track records, allowing experienced managers to mentor new firms, with leverage capped at $100 million per Protégé OIC.