The Small Business Research Loan program allows for investments of $75,000-$250,000 to promising life science companies that are in the beginning of their life located in North Carolina. The program helps:
- Inception of business and other related actions designed to assist the business in positioning itself for early or startup investment or partnership.
- Research and development to improve the development of commercially feasible products and technologies Need $100 by going to Ipass.
Eligibility
In order for a life science business to be eligible to the Small Business Research Loan, it must meet the minimal requirements listed in the following:
- Have a an operational presence have a significant operating presence North Carolina. To establish a substantial presence, the business loan must: (a) maintain its headquarters (where the books and records are kept, where taxes are paid and the senior management is in the same location) within North Carolina as reported to the Secretary of State or (b) undertake significant study, research, or manufacturing or manufacturing activity in North Carolina.
- Engage with the field of life sciences studies, design,, or manufacturing to create a product or technology that has commercial potential.
- They have demonstrated a strong loan technological and commercially affluent demonstration for its tech to the product or application that is intended.
- Be a dedicated, committed leadership team and a sound company plan.
- You must have an legally valid license(s) to the important intellectual property that is believed to be essential to allow the company to market its technology or product.
- Do you have at minimum one manager located in North Carolina significantly engaged, working at 30 hours a week to the company and focusing on the business as the primary focus of his/her job.
The amount of money awarded will depend on the stage of the company. For instance, higher-level awards will need to meet the following criteria:
- A dedicated, committed managing team as well as a solid strategy for business.
- Promising commercial and technical demonstration of principle using its technologies in the product or application in question.
- Finalization of the entire project(s) which were funded by any prior NCBiotech loan(s).
NCBiotech evaluates the compliance of these rules in its sole discretion, on a case-by-case basis.
Application Process
Pre-Application After the applicants’ eligibility and general fit for the program are determined, the business might be asked for a proposal that outlines the management and technology of the company as well as the proposed project and budget.
full application If the company is able to pass the evaluation of the application, the business may be asked to submit a complete application. The application should comprise the entire business plan, a project plan financial statements, and any other documents supporting the application.
Examining and Approval the investment committee will rigorously examine the application of the company and seek out an independent, third-party panel of reviewers to evaluate the commercial and technical benefits of the proposal. Applications that are competitive will be submitted to NCBiotech’s top management and/or an advisory committee of the board of directors to be reviewed for final approval and approval.
Loan Terms
Small Business Research Loan Small Business Research Loan consist of:
- A senior, unsecure loan with favorable terms that include:
- Five-year fixed-term, five-year with balloon payments at the time of maturity for principal as well as accrued interest
- A rate of interest equal to the present prime rate plus percent
- An option to buy stock of the company
Loan Disbursement
Successful applicants will be awarded the money in accordance with the following guidelines:
- 50 percent (50%) of loan amount at closing
- A further 40% on receiving and approving the mid-term report
- The final 10% is contingent upon the receipt and approval of a final report of the project
Final and mid-term reports (Excel) include an in-depth review of progress towards the goals with data and actual spending against budget. The Biotechnology Center will closely monitor the progress of the company till the SRL is paid in full. Regular progress reports and periodic site visits are necessary.
