NEW VENTURE CAPITAL FUND TARGETS MAINE’S DISTRESSED COMMUNITIES WITH EQUITY CAPITAL AND TECHNICAL ASSISTANCE RESOURCES

June 4, 2003

Portland, Maine: CEI Community Ventures (CCVI), a socially responsible venture capital fund, announces the launch of its New Markets Venture Capital Fund (NMVC). With its geographic focus in northern New England, CCVI will be the only NMVC operating in Maine and will manage more than $10 million in equity funding and $3 million of operational assistance resources.

“Small businesses serve as the engine of Maine’s economy, but identifying the venture capital to fuel this growth is too often elusive--particularly in lower-income communities,” said U.S. Senator Olympia J. Snowe (R-Maine), chair of the Senate Committee on Small Business and Entrepreneurship. “Creation of this New Markets Venture Capital fund will make a real difference in bringing resources to underserved communities, and CCVI deserves credit as one of only seven such organizations to offer this funding.”

The fund is designed to provide venture capital to companies in targeted low-income communities. CCVI will provide qualified businesses in these communities with equity financing and operational assistance resources. CCVI will seek and support investment opportunities in the following Maine counties: Androscoggin, Aroostook, Cumberland, Franklin, Hancock, Kennebec, Knox, Oxford, Penobscot, Piscataquis, Somerset, Waldo and Washington (for specific areas and maps, see http://www.ceicommunityventures.com/criteria/maps.htm).  

"This New Markets initiative will bring investment to areas of the state where incomes are low and opportunity is needed. It will promote job growth and environmental sustainability. Maine will benefit from this collaborative effort. The SBA and CCVI deserve much credit for establishing this important program in our state," Governor John Baldacci commented.

In addition to matching funds for the equity program, SBA is also providing an operational assistance matching grant to support professional services in helping companies either become "equity-ready" or in helping them execute their business plans 

Jeff Butland, SBA’s New England Regional Director, commented “This is an important program that will target low-income areas, providing more equity capital and technical assistance for starting and expanding businesses."

"CCVI looks forward to working with its partners and with existing venture capital organizations to support Maine's growth-oriented manufacturing, service and technology businesses. I encourage interested companies and professional service providers to visit our web site at www.ceicommunityventures.com," CCVI's President Michael Gurau said. CCVI will seek to invest $100,000 to $500,000 in companies that support its social, environmental and financial goals. Where possible, CCVI will work in partnership with a number of existing Maine financing organizations, including Maine Technology Institute, Small Enterprise Growth Fund, Masthead Venture Partners, North Atlantic Capital and CEI Ventures (a sister fund under Coastal Enterprises).

CCVI has received financial support from Banknorth, Sandy River Foundation, Maine Employers Mutual Insurance Company, FAME and the Department of Economic and Community Development. CCVI works in partnership with many Maine organizations, including Maine Technology Institute, SEGF, Loring Development Authority, Maine Manufacturing Extension Partnership, Four Directions Corporation, Pierce Atwood and ethos Marketing.

CCVI (www.ceicommunityventures.com) is a for-profit subsidiary of Coastal Enterprises (www.ceimaine.org), a nationally recognized Maine based community and economic development organization. Contact: Michael Gurau, President, CEI Community Ventures, 207-772-5356 x123, mhg@ceicommunityventures.com.