<p>A devoted tinkerer, Palmer had been experimenting with felt he made out of recycled fleece and molded into sleeves for tech gadgets. Convinced that these eco-friendly covers could sell, he raised startup capital by refinancing his home and applying for a home-equity loan.</p><p>So when the solar firm (which was indeed on its way to Chapter 7) laid him off in late 2010, Palmer was ready. "It was a kick in the pants to get going," he says.</p><p>Related: Cities where startups are thriving</p><p>Palmer took his prototypes to a previous employer, clothing giant Patagonia. Executives there connected him with their coat-recycling initiative, which began supplying him with fleece. With raw materials in hand, Palmer found a manufacturer to press and form the fleece and ship orders to a fulfillment center.</p><p><a href="http://money.cnn.com/2013/01/01/smallbusiness/ipad-cases-refleece.moneymag/">Keep reading...</a></p>