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Thomas County Entrepreneurship (E-) Community Helps Entrepreneur Launch Smoffees Cafe in Colby

Thomas County Economic Development Alliance, one of 20 designated NetWork Kansas E-Communities, recently awarded an E-Community loan package to Smoffees Café, a startup business in downtown Colby, Kansas.  Shawn and Mary Larson, co-owners and founders of the business, expect to open the new café's doors before the end of March, 2010. Utilizing matching funds raised locally through the Kansas Entrepreneurship Tax Credit Program, Thomas County Economic Development Alliance was able to provide the capital the Larsons needed for the new venture.


The Larsons are no strangers to the food and beverage industry, and have also achieved success with a café furniture and custom tabletop business Shawn started three years ago near Denver, Colorado. Shawn has worked in the coffee shop industry for the past 20 years and Mary also has restaurant management experience.

The couple's vision for Smoffees Café began as a dream 7 years ago. After relocating to Mary's native hometown of Colby three years ago, they waited for the right timing, location and opportunity to begin building the new business. Following several unsuccessful attempts to partner with or rent space from an existing business, Shawn consulted with Rick Patrick, Thomas County Economic Development Director. He knew the timing was right when he found a vacant building that could be renovated to house the café.

"Although this new venture has been a work in progress for a couple of years, working with Rick Patrick was only a 5-month process from our initial meeting to the day we got the keys to our building," said Shawn Larson. "He quickly identified the opportunity to obtain matching funds through the E-Community program and walked us through the application process."

In addition to serving smoothies, coffees, breakfast and lunch, Smoffees Café will also provide a meeting place and entertainment venues for residents and college students, as well as for travelers passing through on nearby I-70. The Larsons are also considering plans to move a portion of their tabletop manufacturing business (www.CafeProducts.com) to a back room in the Colby shop, and utilizing the café as a showroom for promoting their products.

"Shawn and Mary both have a strong vision and understanding of what it takes to create a successful business," said Rick Patrick, Thomas County Economic Development Director. "Not only are they opening an entirely new and unique business in Colby; they're also leveraging resources by finding ways to combine marketing and operations for both of their businesses. I'm sure this new venture will have a positive impact on the local economy while enhancing the sense of community in Colby."

"NetWork Kansas launched E-Community in 2007 to help communities grow from within," said Erik Pedersen, NetWork Kansas Associate Director. "This is the third business in Thomas County to receive E-Community funding. Their ongoing success demonstrates the community's ability to collaborate and support entrepreneurs in order to stimulate local economic growth."

Since the program's launch in September 2007, NetWork Kansas has established 20 E-Communities across the state. Collectively, these 20 E-Communities have already provided $565,000 in loans and grants to 22 businesses, allowing them to leverage more than $6 million in additional public and private capital.

 

Funds raised utilize the Entrepreneurship Tax Credit and provide funds for the StartUp Kansas program and Entrepreneurship Community Partnership.  The StartUp Kansas fund will be allocated $1,157,599.20.  Eight new "Entrepreneurship (E) Communities" raised $1,008,717 and include the following communities:  Finney County, Greeley County, Hillsboro, Inman, Osage County, Pottawatomie County, Salina, and Scott County.  Donors from across the state of Kansas contributed to this year's campaign. 

StartUp Kansas and the E-Community Partnership provide matching loans for startups and expansions of existing businesses in rural and distressed communities.  StartUp Kansas funds are available statewide.  E-Community funds are utilized for businesses in the county represented.  Additional E-Communities include:  Anderson County, Augusta, Bird City, Chase County, Cowley County, Great Bend, Kiowa County, Linn County, Marion, Rawlins County, Sterling/Alden, and Thomas County.

 

One key advantage of the Entrepreneurship Tax Credit is that it creates capital beyond the credit itself.  From 2006 to 2008, $4,136,126 in tax credits were utilized, generating $5,513,973 in capital to be deployed in rural businesses, representing a 25% return on the credits.  The funds deployed and available dollars represent 133.7% of the tax credit investment (as provided in a Post-Legislative Audit in October 2009).  At current run rates, it is estimated that the funds raised from 2006 to 2008 will help generate more than $40 million investment dollars for rural businesses across Kansas.  "Since the launch of StartUp Kansas in August of 2006 and the E-Community Partnership in 2008, we have provided matching funds to more than ninety businesses, an average of more than two a month, said Radley, "With eight new E-Communities coming online this year, we expect that rate to continue to increase." 

 

Communities interested in learning about the 2010 E-Community competitive round or donors who are interested in more information about the Entrepreneurship Tax Credit should contact Erik Pedersen at 316-978-7310 or Steve Radley at 316-218-6304. 

Read more in the official news release.

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