Advantages for Participants

How the Program Benefits the Four Main Participant Groups

The time spent on fundraising is greatly reduced, allowing the CEO more time to focus on building the company.
The CEO need only locate a small portion of the required funding locally. If they do so in the manner that satisfies our criteria, the bulk of the funds needed can be provided on a matching basis from outside sources, along with other means to obtain loan guarantees and other funding options to further stretch the investment dollars.
The CEO is provided tools to make securities laws compliance easier and less costly.
The funds provided can stay permanently within the company. The CEO and other shareholders will never have to sell the company to pay back the investors, nor will they have to take the company public if they don't want to.

Full and proper due diligence is performed by others on behalf of investors, in a manner that affords both angel and institutional investors high confidence that it has been done properly and that the investment has been fully vetted.
Angel investors are incentivized knowing large, institutional investors will invest alongside them.
Institutional investors, who rarely invest in small, private companies, now have a means to do so, without having to incur the high costs of processing the investment (due diligence).
Most importantly, both angel and institutional investors are provided a direct path to liquidity for their investment, without having to force the individual companies they invested in to go public or be sold.

The federal government need only provide funds to those elements of the CEED Program that otherwise would not be provided by private sources.
In other cases, by providing funds, the government incentivizes private sources to put in much larger follow-on amounts.
Any funds provided by the federal government are greatly leveraged by a much larger amount of private dollars, thereby saving taxpayers from having to foot the entire bill.
No new bureaucracy is needed to support the CEED Program, yet the effectiveness of the dollars contributed by the federal government will go far beyond the typical return on investment of public funds for any analogous programs.

The CEED Program provides a means of direct community and citizen participation in the Obama administration's goals of healing the country.
Numerous companies can be funded and supported, each contributing to the overall energy and economic health of the community.
Funds so invested remain in the community and as a result, are allowed to circulate within the community for a multiplier effect.