Program Description
The Company Inception Loan Program provides financial assistance to North Carolina biotechnology firms with low-interest matching loans for early stage business development-related activities. This loan supports non-scientific activities critical to the future commercialization of a company's technology.
The funds are meant to enable the company to accomplish critical early business development activities to help the company position itself for start-up and early-stage funding or partnering. Program funds often allow the company to secure professional or consulting services to provide intellectual property clarification, market research or business plan development.
No more than 1/3 of Biotechnology Center funding may be used to support any one activity without prior approval.
Timing
In general, the development staff requires six weeks from the time of formal submission to complete the application processing. The Biotechnology Center president/CEO approves the loans.
Support
A company may request up to $50,000 (minimum $25,000) through the Company Inception Loan program.
These funds can be used for costs associated with business development activities such as:
- Market research/competitive intelligence;
- Business plan development;
- Intellectual property clarification (for instance, a freedom-to-operate opinion from a patent attorney);
- License agreement structuring;
- Regulatory strategy development; and
- SBIR/STTR grant writing assistance.
Prohibited Charges
Due to legal constraints, money provided under the Company Inception Loan program cannot be used for certain purposes. Prohibited charges include (but are not limited to):
- Purchase or lease of real estate, building construction or renovations;
- Salaries for company personnel;
- Overhead or indirect costs; and
- Subcontracts in excess of $500 for personnel, facilities, equipment or services located outside North Carolina unless approved in advance, in writing, by the Biotechnology Center staff.
Loan Distribution
Fifty percent (50%) of the award amount will be distributed following approval of the award. An additional 40% will be released upon receipt and approval of a mid-term project report. The final 10% will be distributed upon receipt and approval of a final project report.
Contact
Contact Yonnie Butler at (919) 541-9366 or yonnie_butler@ncbiotech.org with questions regarding this program or to schedule a preliminary meeting.