This bill creates a federal push to support worker-owned cooperatives—businesses where employees own and control the company rather than outside investors. Right now, these businesses exist but face obstacles in getting started and growing. The bill directs six federal agencies (Small Business Administration, Treasury, Commerce, Agriculture, Labor, and the IRS) to actively help worker cooperatives succeed by removing regulatory barriers, helping them access loans and funding, providing training and education, and researching what works best.

The bill establishes a new Council on Worker Cooperatives that brings together leaders from these agencies to coordinate efforts and develop a national strategy. This council will identify what's holding worker cooperatives back and propose solutions. The Small Business Administration gets specific instructions to create educational materials in multiple languages and reach out to communities where English isn't the main language, recognizing that cooperative businesses serve diverse populations.

On the financial side, the bill expands a lending program that helps intermediaries (like cooperative development organizations) provide loans to worker-owned businesses, increasing funding from $20 million to $60 million through 2036. It also ensures that Community Development Financial Institutions—banks focused on underserved areas—can help establish and manage worker cooperatives. The council will report to Congress annually for ten years about progress, challenges, and recommendations for supporting this business model as an economic development tool.