DENVER - The Colorado Employee Ownership Office (EOO) at the Colorado Office of Economic Development and International Trade (OEDIT) launched the first round of the Employee Ownership Trial Grant in January. The grant, open to Colorado-headquartered small businesses, reimbursed professional technical services required for businesses to transition to an employee-ownership model.
The Employee Ownership Office reports that among applicants, four companies were able to fully convert to an employee ownership structure by the deadline of May 28, 2021. These companies are:
The grant is eligible for conversions to any employee ownership structure offering an ownership stake to at least 20% of employees. The four businesses have chosen a cooperative model of employee ownership, but there are other models on the spectrum of employee ownership from which to choose. Examples of these structures include phantom stock, profits interest, stock options, stock appreciation rights, employee ownership trust among others.
“Employee ownership is a proven business model and has been prioritized by the State. Our goal is to support more businesses with their conversions,” said Glenn Plagens, Director of Business Support and Rural Prosperity at OEDIT. “We are excited to see that four companies have found success in their conversions and look forward to offering future rounds of this grant funding to see that success in more companies.”
Visit the Employee Ownership Trial Grant website to learn more and apply for a future round.