1. Short title This Act may be cited as the Main Street Employee Ownership Act of 2018 . 2. Definitions In this Act— (1) the terms Administration and Administrator mean the Small Business Administration and the Administrator thereof, respectively; (2) the term cooperative has the meaning given the term in section 7(a)(35) of the Small Business Act, as added by section 3; (3) the term employee-owned business concern means— (A) a cooperative; and (B) a qualified employee trust; (4) the terms qualified employee trust and small business concern have the meanings given those terms in section 3 of the Small Business Act ( 15 U.S.C. 632 ), as amended by this Act; and (5) the term small business development center means a small business development center described in section 21 of the Small Business Act ( 15 U.S.C. 648 ). 3. Expansion of 7(a) loans (a) In general Section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ) is amended— (1) in paragraph (15)— (A) in subparagraph (A)— (i) by striking this subsection to qualified employee trusts and inserting this subsection— (i) to qualified employee trusts ; (ii) in clause (i), as so designated— (I) by inserting , and for any transaction costs associated with purchasing, after purchasing ; and (II) by striking the period at the end and inserting ; and ; and (iii) by adding at the end the following: (ii) to a small business concern under a plan approved by the Administrator, if the proceeds from the loan are only used to make a loan to a qualified employee trust, and for any transaction costs associated with making that loan, that results in the qualified employee trust owning at least 51 percent of the small business concern. ; (B) in subparagraph (B)— (i) in the matter preceding clause (i), by inserting or by the small business concern after the trustee of such trust ; (ii) in clause (ii), by striking and at the end; (iii) in clause (iii), by striking the period at the end and inserting , and