Housed in the Colorado Office of Economic Development and International Trade, the Employee Ownership Network brings together subject matter experts such as employee-owned businesses, attorneys and economic development experts to promote employee ownership in Colorado. Employee-owned businesses promote a higher quality of living for the employee-owners themselves – including higher wages and a longer job tenure — and secure greater economic stability for the communities.
Colorado Governor Jared Polis Shares His Thoughts on Employee Ownership
The Commission on Employee Ownership was established on April 10, 2019 by Executive Order. Governor Polis established the commission to support the Employee Ownership Network by:
Effective June 15, 2019 for terms expiring June 15, 2021
Minsun Ji of Denver, Colorado
Stephanie Lynee Gripne of Denver, Colorado
John Allen Tate of Centennial, Colorado
James Rashad Coleman of Denver, Colorado
Kerry Lynn Siggins of Durango, Colorado
Jennifer K. Briggs of Windsor, Colorado
Effective June 15, 2019 for terms expiring June 15, 2023
Halisi Dawn Vinson of Denver, Colorado
Jason Russell Wiener of Boulder, Colorado
Douglas Lee Dell of Arvada, Colorado
Daniel G. Hobbs of Avondale, Colorado
Steven Michael Johnson of Broomfield, Colorado
Sandra Lee Shoemaker of Larkspur, Colorado
July 31, 2019 – Agenda & Minutes
September 3, 2019 – Agenda & Minutes
October 1, 2019 – Agenda & Minutes
October 29, 2019 – Governors EO Legal Roundtable #1 Agenda & Minutes
November 5, 2019 – Agenda & Minutes
December 3, 2019 – Agenda & Minutes
December 3, 2019 – Governors EO Legal Roundtable #2 Agenda & Minutes
January 7, 2020- Agenda & Minutes
February 4, 2020 – Meeting Postponed Due to Weather
March 3, 2020 – Agenda , Minutes & EO Bankers Roundtable Agenda
September 19 – Agenda & Minutes
September 26 – Agenda & Minutes
October 10 –Agenda & Minutes
October 17 – Agenda & Minutes
October 24 – Agenda & Minutes
October 31 – Agenda & Minutes
November 7 Agenda & Minutes
November 14 Agenda & Minutes
November 21 Agenda & Minutes
November 27 Agenda & Minutes
January 7 – Agenda
February 18 – Agenda
March 3 – Agenda & Minutes
Policy & & MinutesFinance:
September 24 – Agenda & Minutes
October 29 – Agenda & Minutes
December 18 – Agenda & Minutes
January 22 – Agenda & Minutes
February 18 – Agenda
The two primary forms of employee ownership are Worker Cooperatives and Employee Stock Ownership Plans (ESOPs).
What is a Worker Cooperative?
How Does a Cooperative Work?
Benefits of Worker Cooperatives
Employee Stock Ownership Plans, or ESOPs, were designed as a way to put ownership into the hands of American workers. Begun in 1974 with the passage of federal laws, ESOPs comprise an estimated 11,000 companies in the U.S., employing an estimated 11.5 million workers. The laws enacted to encourage employee ownership allow certain incentives for lenders, selling owners, and ESOP companies. The tax advantages of ESOPs often make them a lower-cost source of corporate financing than conventional sources.
What is an ESOP?
How does an ESOP work?
Benefits of ESOPs
In partnership with the Colorado Housing & Finance Authority, we are offering the Colorado Employee Ownership Loan Pilot Program. Funds from the program are designed to offset transition costs, specifically defined as technical assistance (accounting, legal, and/or business advisory services) for Colorado businesses converting to an employee ownership structure.
The pilot program will fund approximately 10 business loans, up to $10,000 per loan. Loan funding is available for no greater than fifty percent of the cost of technical assistance costs, not to exceed $10,000. Loans must be held by the owner of the existing business. Favorable loan rates and terms offered by participating lenders.
Colorado businesses interested in applying or learning more, please contact John Kovacs at 303-892-3840 or via email at [email protected]s.
Non-profit lenders, CDFIs and banks interested in learning more about becoming a lender partner, please contact Nikki Maloney, 303-892-3840 or via email [email protected].
Colorado businesses meeting the following criteria are welcome to apply.
First round of grant funding closes Monday, June 1, 2020.
Grant funding of $2500 is available to Colorado small businesses to pay for professional technical services required for Employee Ownership (EO) business structural transitions (accounting, legal, and business valuation services), or to repay the Colorado EO Loan they received for transition. Applicants are required to be Colorado businesses that have fully transitioned to an employee ownership structure, such as Cooperative, Stock Appreciation Rights, Profit Sharing, Employee Ownership Trust, etc. and must meet the following requirements:
In almost every small business, the owner or owners will eventually want to leave. Selling the business to employees can be a way to provide continuity and preserve the culture of the business.
Many small businesses have trouble attracting and retaining good employees. Using employee ownership as an employee benefit can be an important way to address this problem.
Several reliable studies indicate that, on average, employee-owned firms perform substantially better than non-employee-owned firms when ownership is combined with employee participation in decisions affecting their work. A survey published in the ESOP Report (August 2003) revealed that ESOP companies outperformed the three major stock indices in 2002: the Dow Jones Industrial Average, the NASDAQ composite, and the S&P 500. This means “once again that the decision to become employee-owned through an ESOP means better company performance and greater wealth creation for the employee owners.” (ESOP Report 8/03).
Employee-owned businesses tend to pay higher wages and provide better benefits.
Certain employee ownership structures qualify for tax benefits, which can be substantial.
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