H.R. 2993 — ESOP Funding for SBA Position Act of 2025

This section establishes in the Small Business Administration a position in the competitive service (as defined in 5 U.S.C. §2102), appointed by the Administrator, to assist small business concerns in establishing employee stock ownership plans (ESOPs). Responsibilities include (1) providing guidance on ESOP establishment, including tax treatment, regulatory compliance, stock valuation, and funding opportunities; (2) coordinating with public and private entities for tailored assistance and resources; (3) coordinating with the Department of Labor for regulatory compliance; (4) advocating for appropriate guidance from federal agencies, including on stock valuation and employee ownership regulations; and (5) other duties as determined by the Administrator.

This section requires the Administrator to submit to Congress, not later than one year after enactment and annually thereafter, a report on the activities of the position established under section 2(a). The report must include (1) the number of small business concerns that received assistance from such position, (2) the types of assistance and resources provided to those small business concerns, and (3) policy recommendations for improving the process for small business concerns to establish and maintain employee stock ownership plans.

This section defines key terms for purposes of the Act, including (1) Administration as the Small Business Administration; (2) Administrator as the Administrator of the Small Business Administration; (3) employee stock ownership plan as given in section 4975(e)(7) of the Internal Revenue Code of 1986; and (4) small business concern as given in section 3 of the Small Business Act (i.e., an independently owned and operated business that is not dominant in its field of operation, with size standards established by the Small Business Administration that vary by industry and are based on factors such as number of employees or annual average gross receipts).

This section authorizes appropriations of such sums as are necessary to carry out the Act, including $500,000 for the fiscal year in which the Act is enacted.