BUSINESS IN THE BOX CANYON
ENCOURAGING ENTREPRENEURSHIP The ‘tea’ on Telluride’s new regional loan fund BY SAGE MARSHALL
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fter spending significant time in Asia and running a tea business, Colin Hudon settled in Telluride and quickly noticed an opening among local gathering places for a tea room, so the clinical herbalist, acupuncturist and practitioner of traditional Chinese medicine started Mountain Gate Teahouse and Art Gallery. Sadie Farrington says she knew there was strong interest in Telluride for sustainably and humanely raised local meats and founded Tomboy Butcher Shop, a full-service outlet based in Ilium. Without loans from the Telluride Regional
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initiative of the Telluride Foundation and First Southwest Community Fund, with support from Zoma Foundation, launched in the summer of 2019 to address this gap. Bonnie Watson manages the fund, which lends to most types of small businesses. Watson says she practices “character lending,” which means considering the grit and determination of the entrepreneurs seeking loans, as well as their business plans. This practice especially benefits businesses in rural communities in San Miguel County and the West End, including Norwood, Nucla and Naturita. “We understand the challenges entrepreneurs are facing in rural Colorado and so our fund has to be flexible,” Watson says. “We are helping the individual who realizes the value of a bustling main street in the West End, but may not know how to get started when building and financing a small business like a brewery, bakery or property management firm.” The fund offers attractive and attainable loans at or below market rate to keep its financing accessible to small business owners. It acts as a bridge loan to help business owners receive the financing they need, but more importantly the fund helps small business owners build a healthy working reLoan Fund, neither of these new businesses would lationship with commercial banks that will be able have had access to the financing needed for their to serve all their business needs down the road. businesses to thrive. Commercial banks typically Watson, who comes to the fund from a career only consider lending to companies with proven as a commercial and residential banker, spends a track records, which lot of time providing means they often won’t technical assistance consider small businesses to entrepreneurs. ‘WE UNDERSTAND THE and startups without a CHALLENGES ENTREPRENEURS She’s not alone. certain number of years Though there are no ARE FACING IN RURAL under their belts. The local business-oriCOLORADO.’ $2 million operating ented organizations, BONNIE WATSON capital loan fund, a joint such as a chamber
