Unless a business owner in Saratoga, Riverside or Encampment can convince the mayor of Rawlins, or an appointee, that their business benefits Rawlins, they will not be eligible for a working capital loan from $13.2 million in funding created by the Small Business Credit Initiative, an arm of the 2010 Small Business Jobs Act passed by the U.S. Congress.
Diane Wolverton, executive director of Wyoming Smart Capital Network Consortium (Consortium), created to publicize and manage the funds, said working capital loans are the hardest to get because often the business owner has no collateral.
“You are just trying to keep the lights on and the employees paid,” Wolverton said.
The Consortium is made up of 17 towns in Wyoming, led by Laramie. For towns to qualify for the loans, city councils had to sign on with Laramie’s grant application by resolution.
“All incorporated municipalities were invited in September 2011,” Woverton said. “Laramie invited everyone.”
Rawlins and Hanna were the only towns in Carbon County that signed up to participate. Members of the Saratoga Town Council said they were not aware of, or did not recall getting information about the program.
Saratoga Town Clerk Suzie Cox said at that time the town was still reeling from the 2011 floods.
“We still had high water and were out checking berms daily, and trying to get all of the FEMA stuff in order,” Cox said. “It’s just something that fell through the cracks.”
Because the application to the federal government had a short and inflexible deadline, towns had to act fast.
“The timing was such that some towns just couldn’t get it done,” Wolverton said.
According to Cindy Wallace, executive director of the Carbon County Economic Development Corporation, the funding provides guarantees to local banks to make qualifying loans to applicants that could complement U.S. Department of Agriculture or Small Business Association loans.
The funding works by providing collateral on the borrower’s behalf for up to 50 percent of the loan amount.
Wolverton said in addition to working capital loans, the Consortium also intends to support “Angel Investor” funding through the Seed Capital Network.
“Angel capital”, a term that came out of the entertainment business, provides a place for high net-worth people to jointly enter an account to invest in businesses.
“Angel capital is different than venture capital – angel is earlier stage,” Wolverton said. “It can provide seed capital when you have a plan for your business, but you haven’t sold anything yet.”
Wolverton said angel networks exist in Wyoming and part of the goal of the Consortium is to facilitate the growth of the industry in Wyoming.
It is too late for the town of Saratoga to join the Consortium, but people from Saratoga can invest in angel accounts. To loan or invest money, you can be located anywhere, but to receive a loan your business must be in a participating city.
Laramie, Casper, Cheyenne, Cody, Douglas, Edgerton, Gillette, Green River, Hanna, Hartville, Midwest, Pine Bluffs, Powell, Rawlins, Rock Springs, Sundance and Wheatland were the cities that signed on with the Consortium.
For more information regarding the Wyoming Smart Capitol Network visit http://www.wyosmartcapital.org or call Diane Wolverton at 307-760-7373.
Reader Comments(0)