OLATHE – Today, Gov. Polis and the Colorado Employee Ownership Office, housed within the Colorado Office of Economic Development and International Trade (OEDIT), announced that Rocky Mountain Steel, Inc., based in Olathe, Colorado, is now 100% employee owned. The company transitioned to a 100% Employee Stock Ownership Plan (ESOP) in June with support from the Employee Ownership Office.
“Congratulations to the new employee-owners of Rocky Mountain Steel, Inc.! Your hard work contributed to the company’s success, and now you will continue its legacy. I am proud of our administration’s work to save businesses like Rocky Mountain Steel money and support employee ownership so that everyone can benefit when a business thrives,” said Gov. Jared Polis.
Founded in 1997, Rocky Mountain Steel is a leader in steel fabrication and construction, employing 30 people. As owners Bernie Lorimor and Tim Warner neared retirement, they chose to sell the company to their employees as a way to pass its legacy on to the people who helped build it.
“Moving forward, all Rocky Mountain Steel, Inc. employees will have the opportunity to financially benefit in a much bigger way for their hard work. Along with their excitement, we are already seeing a shift in mindset as they become employee-owners, even more committed to the company’s success,” said Dylan Wiman, President of Rocky Mountain Steel, Inc.
To make the transition to an ESOP, Rocky Mountain Steel participated in two OEDIT programs:
- Cash Collateral Support Program - Provides a cash deposit as collateral for a business loan or credit facility when a business cannot meet the lender’s collateral requirements. Funded by the US Treasury's State Small Business Credit Initiative (SSBCI), one program goal is to support employee ownership business transitions and financing for employee-owned businesses.
- Employee Ownership Tax Credit - Offsets the costs a business owner incurs when selling the business to employees. The tax credit covers up to 50% of a qualified business’ conversion costs, and up to $150,000.00 for ESOPs, for use on their state income taxes.
These programs are part of a suite of state resources designed to help Colorado businesses explore and convert to employee ownership models. Across the United States, an estimated six in 10 business owners plan to retire or sell their businesses within the next 10 years. Yet only 15% of businesses are passed on to the next generation and only 20% of listed businesses sell. Employee Ownership offers an alternative path that gives business owners a guaranteed succession plan and retains important jobs in local communities.
“Employee-owned businesses regularly see higher wages, less turnover, access to better benefits, and improved job security for employee owners,” said Eve Lieberman, OEDIT’s Executive Director. “We are pleased to see Rocky Mountain Steel achieve this milestone, preserving a crucial Western Slope business and rural jobs.”
Businesses interested in learning more about employee ownership can register for two free online courses: Introduction to Employee Ownership and Exit Planning for Your Business, available through the To Strengthen Learning Track. Available on demand and accessible to Colorado-headquartered small business owners, these courses are offered in partnership with the Colorado Small Business Development Center network.
About Rocky Mountain Steel, Inc.
Rocky Mountain Steel, Inc. fabricates, supplies and installs structural and miscellaneous steel for commercial, education, healthcare, airports, industrial and residential construction projects throughout Colorado and surrounding states. Rocky Mountain Steel maintains a full staff of estimators, fabricators, project managers and detailers with decades of experience in the steel design, fabrication and erection field. Rocky Mountain Steel is proud to be an employee-owned business. For more information, please contact info@rockymountainsteelinc.com.
About the Employee Ownership Office
The Colorado Employee Ownership Office was established in 2020 by Governor Jared Polis to provide programs, funding, and incentives for business owners to understand, explore, and pursue employee-owned business structures. Housed within the Office of Economic Development and International Trade, the office and the Employee Ownership Commission remove barriers and increase accessibility to advance employee ownership across Colorado. The office offers opportunities such as the Employee Ownership Tax Credit, educational and technical assistance resources, peer networks, and more.