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Company Inception Loan (CIL)

Maximum Award: 

Program Description

Through the CIL program, loans of up to $75,000 are available for start-up life science companies in North Carolina. This program supports business inception and related activities intended to help the company position itself for start-up and early-stage funding or partnering.


In order for a candidate biotechnology company to be eligible to apply for the CIL, it must:

  • Have significant operating presence in North Carolina. To establish a significant presence, the company must (i) maintain its head office (where its books and records are kept, taxes are paid, and senior management is located) in North Carolina as reported to the Secretary of State and/or (ii) conduct significant research, product development or manufacturing activity in North Carolina.
  • Be engaged in life science research, development or manufacturing to develop a product or technology with commercial potential.
  • Have at least one management team member in North Carolina significantly engaged and dedicating at least 30 hours per week to the company and focusing on the company as his/her primary employment.
  • Have a valid license or option to license the relevant core intellectual property expected to be necessary for the company to commercialize its product or technology.

NCBiotech determines compliance with these requirements in its sole discretion on a case-by-case basis.

Application Process

Companies interested in more information about a CIL please complete the interest form.   Upon receipt, the program director will contact you to discuss the company, its proposed project, and the application procedures. After this discussion, company representatives may be invited to the Biotechnology Center to make an initial presentation.

Pre-Application: Once the applicant’s eligibility and general fit for the program have been established, the company may be invited to submit a pre-application describing the company’s management, technology, proposed project, and budget.

Full Application: Upon satisfactory review of the pre-application, the company may be invited to submit a full application. This application will include an expanded version of the information contained in the pre-application, company financial statements and other supporting documentation.

Review and Approval: The Business and Technology Development team will thoroughly review the company’s application.  Competitive applications will be recommended to  NCBiotech's President for final review and approval. Decisions expected approximately six to eight weeks after full application is received.


Loan Terms

The CIL is a senior unsecured loan with favorable terms including:

  • Three-year loan with balloon payment at maturity for principal and accrued interest.
  • Interest rate equal to the current prime rate plus 3%.
  • Warrant coverage for a portion of the loan principal amount.

Loan Distribution

Successful applicants will receive the loan funds according to the following schedule:

  • 50% of the loan amount at closing.
  • An additional 40% upon receipt and approval of a mid-term project report.
  • The final 10% upon receipt and approval of a final project report.

Mid-term and final reports include a detailed update of progress against proposed milestones (including supporting documentation) and actual spending versus budget. The Biotechnology Center will actively monitor the company’s progress until the CIL is repaid in full.  Periodic progress reports and occasional site visits will be required.


Contact Greta Brunet at with questions regarding this program.