Impact Investing Policy Research
Our Funding Partner, The Tipping Point Fund, sought us out for an opportunity to advance policy ideas to mobilize private capital for the public good to create and amplify tools and policies needed to scale the impact investing market for CDFIs.
Impact Investing Policy Recommendations
(across a Policy Framework for Policy Design and Analysis)
1. Supply Development
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Issue formal guidance to CDFIs that lending to employee-owned businesses/financing employee ownership conversions counts toward their mandate under the CDFI Fund.
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Capitalize Local Economy Preservations Funds (LEPFs)
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Pass the Employee Equity Loan Act to create up to $100B in loan guarantees to scale ESOPs transitions
2. Directing Capital
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Fully animate the Main Street Employee Ownership Act allowing the use of SBA 7(a) loans for employee ownership conversions. Remove the Personal Guarantee requirement for SBA loans.
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Create an Office of Employee Ownership within a federal agency to increase coordination across federal and state and local agencies.
3. Demand Development
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Provide federal funding to states for state-level outreach and technical assistance on broad-based employee ownership.
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Alter MBE Certification to include employee-owned businesses.
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Provide federal subsidies for employee ownership feasibility studies.
Policy Process Diagram
