New Jersey Signs Law Funding Employee Ownership Business Transitions
Trenton – September 22, 2026 -- New Jersey Gov. Mikie Sherrill has signed bipartisan legislation (A5016/S4218) creating an Employee Ownership Transition Program and a revolving loan fund at the New Jersey Economic Development Authority (NJEDA) to finance conversions of businesses into employee-owned firms.
NJEDA revives a financing model that returned ninefold on its original loan
The new Employee Ownership Revolving Loan Fund reactivates a mechanism NJEDA first used 50 years ago to finance the employee buyout of the Okonite Company in Passaic County. That original loan was fully repaid and revolved nine times over; Okonite remains 100% employee-owned today and has distributed more than $300 million in ESOP payouts to workers. The fund can draw capital from state appropriations, federal sources including U.S. Economic Development Administration grants, and philanthropic capital.