How CEF Helped Nederland Businesses After Devastating Fire

How CEF Helped Nederland Businesses After Devastating Fire

On October 9, 2025, a devastating fire destroyed the Caribou Village Shopping Center in Nederland, Colorado, leaving 21 local businesses in ruins. In the immediate aftermath, the community rallied together. A local realtor, Dan Vollmer, quickly launched a GoFundMe campaign that raised an impressive $291,245, a testament to the generosity of neighbors helping neighbors.

But as the campaign gained momentum, a new challenge emerged: how to distribute nearly $300,000 to affected businesses in a way that was fair, legal, and wouldn't create unintended tax burdens for the organizer or recipients. That's where Colorado Enterprise Fund stepped in.

From Generous Gesture to Complex Distribution
What begins as a kind-hearted fundraising effort can quickly become complicated. Without proper administration, large GoFundMe distributions can create significant tax liabilities and legal headaches. The original organizer faced the daunting task of managing nearly $300,000 in distributions, complete with IRS reporting requirements, identity verification, and proper documentation, all while business owners desperately needed access to these funds.

As the saying goes, "It takes a village," Dan turned to the Small Business Development Center (SBDC) serving Boulder County to see if they could help.  While SBDCs throughout the state are an amazing resource for small businesses, they are not set up to provide fiscal agent/grant administration services.  Sarah Wood, Boulder SBDC Director, reached out to CEF, knowing CEF had helped out the City of Boulder and Boulder County with grant administration during COVID. 

CEF, as a nonprofit Community Development Financial Institution with extensive experience administering grant programs for local governments and community organizations, was uniquely positioned to help. We stepped in as a fiscal agent, taking on the complex administrative work at no cost to the affected businesses.

Behind the Scenes: The Work Required
Distributing disaster relief funds isn't as simple as sending money through Venmo. It was further complicated by the fact that this fundraiser was intended to support all affected businesses, while other fundraising efforts only assisted a select group of individuals or businesses. CEF handled the critical but time-consuming work that ensured everything was done properly and legally. This included collecting W-9 forms from all recipients, verifying banking information and proper identification, issuing 1099 tax forms, and maintaining documentation for IRS compliance.

Given the size of the fund, GoFundMe required CEF to submit documentation proving we were a reputable nonprofit organization before releasing the funds. Our established track record and credentials made this process smoother, but it still required careful coordination.

Community Decision-Making
One of the most challenging aspects was determining how to distribute the funds among the 21 affected businesses. Many of the businesses were in survival mode and somebody needed to take the lead to help move it forward. This is where one of the owners, Barb Hardt, helped facilitate the discussion. It took a couple of weeks of dialogue, but rather than imposing a formula, the majority of the business owners agreed to divide the money evenly. In a remarkable show of community spirit, one owner even chose to forgo their share so others could receive more.

Fast-Tracking Recovery
Time was critical. Business owners needed these funds quickly to secure new leases, purchase inventory, and keep employees on payroll. Despite the complexity, CEF completed the entire distribution process in approximately two weeks, which is remarkably fast considering we had to transfer funds from GoFundMe, collect documentation from 20 businesses, and process all distributions with proper legal safeguards.

Several CEF staff members worked extensive hours behind the scenes to expedite the process. Bard Hardt mentioned, “If CEF had not been involved, the distribution would have taken longer.  CEF kept everything moving smoothly and efficiently.” While we typically charge an administrative fee for grant distribution services due to the time investment required, we provided this service completely free of charge. Supporting Colorado's small business community, especially in times of crisis, is central to our mission.

When disaster strikes, the path to recovery requires more than financial resources. It requires expertise, coordination, and organizations willing to step up and help. We're honored to have played a role in helping these Nederland businesses begin rebuilding their livelihoods.