Colorado established a statewide Office of Employee Ownership to increase the number of employee-owned companies in the state by administering a statewide tax credit (HB-21-1311) for employee-owned companies. It provides grants for feasibility studies and technical assistance to help owners sell to their employees and educates businesses about employee ownership through storytelling and building a network of employee-owned companies.
Miami, Florida, amended its revolving loan fund policies to allow its community-development-block-grant-funded loan program to finance the conversion of existing businesses to employee-owned structures, with specific callouts for worker cooperatives.
New York City developed the nation’s largest municipal initiative for education and technical assistance around employee ownership and conversion. Business owners can access $10,000 of technical assistance services, utilize the Owners2Owners hotline and have targeted financing and grant opportunities for worker cooperatives.
San Diego Workforce Partnership uses federal Workforce Innovation and Opportunity Act funds designated to avoid layoffs to subsidize feasibility and transaction costs for retiring business owners to sell to their employees. Its investments have an explicit focus on racial and gender equity by targeting industries in San Diego with a majority Black and Latinx frontline workforce (slides 22-29).
Firebrand Bakery in Oakland operates as an employee-owned trust with commitments to hire marginalized groups, profit sharing, equitable supply chains, and long-term success over short-term profits.
Tucson, Arizona used American Rescue Plan funds for a study on small business retention risks and offered technical assistance to assess feasibility and implement employee ownership transitions.
North Coast Small Business Development Center in California used funding to educate local business owners on employee ownership as a succession strategy, supporting long-term business stability.
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