Opportunity to Own policy will help MA families weather economic shocks, advocates say.
FOR IMMEDIATE RELEASE
CONTACT: Helen Matthews, homefries@economicdemocracy.us, 617-784-1731
CONTACT: Helen Matthews, homefries@economicdemocracy.us, 617-784-1731
Massachusetts State House - As new U.S. tariffs send shock waves through the national and global economy, a coalition of advocates from across the state gathered at a press conference with lawmakers last Thursday to unveil a new bill known as "Opportunity to Own" (H.503/S.305). The bill aims to stabilize the Commonwealth's economy and protect workers from layoffs.
If passed, Opportunity to Own will help local workers buy the businesses that employ them when they go up for sale, collectively becoming business owners. The policy was crafted this year by the Coalition for Worker Ownership and Power (COWOP), which hosted the press conference in collaboration with MA lawmakers.
According to a new report from Alignable, a small business networking platform, almost half of small business owners in Massachusetts are anxious about declining revenue due to the tariffs. The risk of small business closures during trade wars is compounded by the ongoing "silver tsunami" of retiring business owners - baby boomers own half of all privately held firms in Massachusetts, according to the ESOP Association. As they retire, some will find a way to pass along their business to new owners, but many will shudder their doors, resulting in layoffs and loss of local job opportunities.
"We have no time to waste in this economic moment," said Helen Matthews of COWOP. "Now is our chance to deepen the roots of our local businesses so the storm of supply chain disruptions and rising prices, combined with the silver tsunami, doesn't knock them out," said Matthews.
The bill includes a state tax credit for small business owners who sell to their workers, exempting them from capital gains tax for sales under $1M. It also enables groups of workers to prepare an offer to buy their employer's business, ensuring they're notified of the opportunity to purchase and have a brief window of time to make a non-binding offer.
Opportunity to Own will "create a pathway to employee ownership that doesn't push owners out," said Representative Chris Worrell who co-filed the bill. "It incentivizes small business owners to preserve the business that they spent their lives building, by passing it off to the people that helped build it with them," said Worrell.
Selling a small business in Massachusetts can be tough. According to a recent report from BizBuySell, most small businesses on the market in eastern Massachusetts don't sell - and, of those that do, most sit on the market for months and sell for less than the asking price. Advocates say current business owners will be able to retire with more financial security while preserving the legacy of their business with the passage of the bill.
"There's a massive amount of small local businesses at risk of closing in the next few years," said Alex Papali, Policy Director of the COWOP coalition. "Here's the solution, everybody wins," said Papali.
The coalition is also pushing for support for worker-ownership in the state budget, calling for a $300K allocation for Massachusetts' new Office of Employee Ownership and a $10M allocation to the Small Business Technical Assistance program. At the press conference, Representative Gentile spoke out in support of these budget priorities.
If passed, Opportunity to Own will help local workers buy the businesses that employ them when they go up for sale, collectively becoming business owners. The policy was crafted this year by the Coalition for Worker Ownership and Power (COWOP), which hosted the press conference in collaboration with MA lawmakers.
According to a new report from Alignable, a small business networking platform, almost half of small business owners in Massachusetts are anxious about declining revenue due to the tariffs. The risk of small business closures during trade wars is compounded by the ongoing "silver tsunami" of retiring business owners - baby boomers own half of all privately held firms in Massachusetts, according to the ESOP Association. As they retire, some will find a way to pass along their business to new owners, but many will shudder their doors, resulting in layoffs and loss of local job opportunities.
"We have no time to waste in this economic moment," said Helen Matthews of COWOP. "Now is our chance to deepen the roots of our local businesses so the storm of supply chain disruptions and rising prices, combined with the silver tsunami, doesn't knock them out," said Matthews.
The bill includes a state tax credit for small business owners who sell to their workers, exempting them from capital gains tax for sales under $1M. It also enables groups of workers to prepare an offer to buy their employer's business, ensuring they're notified of the opportunity to purchase and have a brief window of time to make a non-binding offer.
Opportunity to Own will "create a pathway to employee ownership that doesn't push owners out," said Representative Chris Worrell who co-filed the bill. "It incentivizes small business owners to preserve the business that they spent their lives building, by passing it off to the people that helped build it with them," said Worrell.
Selling a small business in Massachusetts can be tough. According to a recent report from BizBuySell, most small businesses on the market in eastern Massachusetts don't sell - and, of those that do, most sit on the market for months and sell for less than the asking price. Advocates say current business owners will be able to retire with more financial security while preserving the legacy of their business with the passage of the bill.
"There's a massive amount of small local businesses at risk of closing in the next few years," said Alex Papali, Policy Director of the COWOP coalition. "Here's the solution, everybody wins," said Papali.
The coalition is also pushing for support for worker-ownership in the state budget, calling for a $300K allocation for Massachusetts' new Office of Employee Ownership and a $10M allocation to the Small Business Technical Assistance program. At the press conference, Representative Gentile spoke out in support of these budget priorities.
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The Coalition for Worker Ownership and Power (COWOP) is a statewide network that brings together worker co-ops and developers, grassroots organizations and labor unions, and funders and investors to resource and coordinate the advancement of a worker ownership movement across Massachusetts.
The Coalition for Worker Ownership and Power (COWOP) is a statewide network that brings together worker co-ops and developers, grassroots organizations and labor unions, and funders and investors to resource and coordinate the advancement of a worker ownership movement across Massachusetts.
