Budget Amendment ID: FY2024-S3-143

ECO 143

Grant and Loan Program for Worker Owned Cooperative Businesses

Messrs. Gomez, Brady and Eldridge, Ms. Edwards, Ms. Kennedy, Messrs. Feeney and Mark, Ms. Miranda and Messrs. Lewis and Cyr moved that the proposed new text be amended in section 2, by adding the following new item:-

XXXX-XXXX For a grant program administered by the Massachusetts Center for Employee Ownership (MassCEO) to empower entrepreneurs wishing to form worker-owned cooperative businesses with adequate capital resources to succeed, and to build a stable and thriving worker-owned cooperative business ecosystem across the Commonwealth.  Worker-owned cooperative businesses shall qualify for inclusion as defined under MGL Ch. 157A, or having a cooperative ownership structure in which; (i) the membership is composed of workers of such organization, (ii) membership is open to all workers of such organization, (iii) a majority of the ownership interests are owned by members, (iv) all major governance issues are voted on the basis of one person - one vote; and (v) a majority of the allocated earnings anywhere but a collective account would be allocated to members on the basis of patronage.  MassCEO may issue these appropriated funds to lending institutions specializing in worker owned cooperatives in Massachusetts to directly deploy funds within the communities they serve, provided that a minimum of 30% of said funds are expended as grants. The remainder of these funds will advance economic opportunity and equitable access to capital in MA communities by providing loan guarantees or a loan loss reserve to qualifying worker-owned cooperative businesses, to amplify available resources, and to encourage lending to entrepreneurs who lack access to collateral or otherwise ineligible for traditional loan products......$1,700,000.