Small Business Employee Ownership Act

[AI summary unavailable — showing source text] Small Business Employee Ownership Act - Amends the Small Business Act to make employee-owned firms eligible for financial assistance under the business loan program. States that in the case of small business concerns using an employee stock ownership plan, as defined in the Internal Revenue Code of 1954, all financial assistance shall be made to the trust created for employee ownership of stock (ESOT). Predicates such assistance on: (1) a guarantee by the company seeking assistance that it will repay all obligations incurred by the ESOT; (2) the written assurance of the trustee of the ESOT that all guaranteed loans will be used solely for the purchase of company stock; (3) a distribution arrangement which vests ownership of all stock with the employees no later than the expiration date of any assistance made available to acquire such stock; (4) a certified plan, meeting specified conditions, for the allocation of company stock among the employees; and (5) the satisfaction of the Administrator of the Small Business Administration that all loans to an ESOT will be used solely to finance the acquisition. Authorizes the extension of loan guarantees to employee organizations, including …