RUMFORD – A new source of money for building stronger businesses or helping to start new ones in the River Valley will soon be available.

The Rumford/Mexico area is one of several areas in the state that qualifies for about $13 million in community development venture capital funds under Coastal Enterprises Inc.

Much of the River Valley area, along with parts of Lewiston and Auburn, Norway and Franklin County were selected as qualifiers for the community venture capital program partly because of low incomes and high unemployment rates.

Scott Christiansen, River Valley economic developer, said qualifying for some of this money that will come from the Small Business Administration, FAME and private investors will help make the area more attractive for potential new businesses.

“Anything that makes more money available for risk-takers will help,” he said.

Michael Gurau, president of CCVI, the CEI Community Ventures program, said the impact of the venture funding depends on the opportunities available in any particular region.

Community development venture capital is different from traditional venture capital, he said, because investors look for both financial and social returns on their money. It is not as high risk, or as high return, as traditional venture capital.

“It tries to find a way to invest in companies with good, strong growth, not fast growth,” he said.

He said funds can be used for such things as small manufacturing and service centers.

Gurau said he plans to hold a growth financing seminar that will explain in detail the qualifications for taking advantage of the venture capital money sometime in October or November. Because most of the $13 million is targeted for Maine, and several regions in Maine, the seminar will be held in a central location such as Franklin County, although no specific site has been selected.

Area growth councils, banks, businesses, entrepreneurs and others will be encouraged to attend, he said.

Christiansen looks forward to the seminar so he can learn how community venture capital can be used in the River Valley.

“I’m looking forward to the informational meeting. This is a good thing, no matter how you slice it,” he said. “This is money not otherwise in Maine. It raises our profile and makes us more attractive to risk takers.”

eadams@sunjournal.com

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