Center to offer more loans for startups
Published: July 15, 2008
The N.C. Biotechnology Center has expanded a loan program in an attempt to help start-up companies bridge the gap between inception and significant capital investment.
The center said that small biotech companies could qualify for up to $1 million in loans.
"Building a viable biotechnology company requires years of struggle and millions of dollars," John Richert, the vice president of the Business and Technology Development Program for the center, said last week. "And costs keep rising."
"So, we’ve not only increased the caps on these offerings, but we’ve also made some revisions to fill funding gaps and stay ahead of the changing dynamics of the marketplace," he said.
The push for expanding the loan program came from members of the venture-capital community, university technology-transfer offices and entrepreneurs.
The program already has provided more than $16 million to more than 100 startup companies since the center was established in 1984.
The loans are offered in stages, such as inception, research milestones and overall growth. For example, the center offers a $50,000 company-inception loan that’s geared toward corporate spinoffs or startups from universities. There’s also a $50,000 technology-enhancement grant for technology-transfer offices at North Carolina universities.
"That’s to help them make technologies they may have on their shelves more licensable," Richert said.
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