NEW VENTURE CAPITAL FUND TARGETS NORTHERN NEW ENGLAND’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 Maine, New Hampshire and Vermont, CCVI will be the only NMVC operating in the region and will deploy more than $10 million in equity funding and $3 million of operational assistance resources.

Political leaders from across the region have applauded this program:

“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.”

"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," Maine’s Governor John Baldacci commented.

New Hampshire’s Governor Craig Benson comments “Venture capital is a key driver of economic and entrepreneurial growth in our communities. CCVI offers an important program for New Hampshire, promoting job growth and environmental sustainability using venture capital and operational assistance.  I am excited that they will be able to help build the next generation of successful New Hampshire companies.”  

Vermont’s Governor Jim Douglas said “I am pleased to welcome CEI Community Ventures, Inc. into Vermont .  It is good to see investors willing to put their money into Vermont businesses and I appreciate the good work of CCVI.”

The fund is designed to provide venture capital and technical assistance resources to companies in targeted low-income communities (see http://www.ceicommunityventures.com/criteria/maps.htm).  Co-funded by the US Small Business Association, an operational assistance matching grant will 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 northern New England’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.

CCVI has received equity investment from Banknorth, The John D. and Catherine T. MacArthur Foundation, Sandy River Foundation, Maine Employers Mutual Insurance Company, the Finance Authority of Maine, Coastal Enterprises Inc., and the Vermont Community Foundation. CCVI has received cash and in-kind contributions for the technical assistance program from a variety of state and private organizations—see http://www.ceicommunityventures.com/about/partners.htm for list).

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