A steel fabrication and construction business based in Olathe has transitioned to employee ownership.

Rocky Mountain Steel participated in two state programs in implementing an employee stock ownership plan.

“Moving forward, all Rocky Mountain Steel employees will have the opportunity to financially benefit in a much bigger way for their hard work,” said Dylan Wiman, president of Rocky Mountain Steel. “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.”

As owners Bernie Lorimor and Tim Warner neared retirement, they decided to sell the company to their 30 employees as a way to pass its legacy on to the people who helped build the nearly 50-year-old operation.

Colorado Gov. Jared Polis praised the decision. “Congratulations to the new employee owners of Rocky Mountain Steel. 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.”

Rocky Mountain Steel participated in two programs of the Colorado Office of Economic Development and International Trade.

The cash collateral support program provides a cash deposit as collateral for a business loan or credit facility when a business can’t meet the lender’s collateral requirements. The program supports employee ownership business transitions and financing for employee-owned businesses.

The employee ownership tax credit offsets the costs a business owner incurs when selling the business to employees. The tax credit covers up to half of qualified business conversion costs and up to $150,000 for employee stock owners plans, for use on 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, said Eve Lieberman, executive director of the Colorado Office of Economic Development and International Trade.

“Employee-owned businesses regularly see higher wages, less turnover, access to better benefits and improved job security for employee owners,” Lieberman said.  “We are pleased to see Rocky Mountain Steel achieve this milestone, preserving a crucial Western Slope business and rural jobs.”