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Strategic Growth Loan (SGL)

Maximum Award: 

Program Description

The SGL program is designed to help North Carolina life science product companies reach specific and meaningful milestones that will enable them to obtain further funding from investors and/or to commercialize their products.  For most applicants, SGL awards of up to $250,000 will be matched by an equal or greater investment from one or more organized angel groups or venture capital firms.  For certain exceptionally well-qualified applicants that have a larger matching investment from a top-tier life science investment group, an SGL award of up to $500,000 will be possible.


In order for a company to be eligible to apply for the SGL, 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 achieved a robust technical and commercially promising proof-of-principle of its technology for the intended product or application.
  • Have a committed, dedicated management team and a solid business plan.
  • Have valid license(s) to the relevant core intellectual property expected to be necessary for the company to commercialize its product or technology.
  • Obtain a commitment from an Angel Group or VC for an equity investment or loan at least equal in value to the amount being sought under the SGL. Matching investor(s) must have significant life science investing experience, conduct formal due diligence and be willing to share the outcome of this due diligence during the application process, and have additional funds set aside for future investments in the company.
  • Have completed all project(s) funded by any previously-awarded NCBiotech loan(s).

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

Application Process

Companies interested in applying for an SGL should contact NCBiotech's SGL program director listed in the Contact section above 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, budget, and source of matching funds.

Full Application: Upon satisfactory review of the pre-application, the company may be invited to submit a full application.  This application will include the company’s complete business plan, project proposal, financial statements, matching investment commitment, and other supporting documentation.

Review and Approval: The Business and Technology Development team will thoroughly review the company’s application and solicit independent, third-party reviewers to help evaluate the technical and commercial merits of the proposal. Competitive applications will be presented to NCBiotech's Equity Investment Committee (EIC) for final review and approval.

Application Deadlines:

Pre-Application must be
submitted no later than:
And full application
must be submitted by:
For potential review
by EIC in:
November 7, 2016 December 16, 2016 March 2017
February 3, 2017 March 10, 2017 June 2017
May 12, 2017 June 16, 2017 September 2017
August 4, 2017 September 8, 2017 December 2017

Loan Terms

The SGL 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 SGL is repaid in full.  Periodic progress reports and occasional site visits will be required.


Contact Kate Holt at with questions regarding this program or to schedule a preliminary meeting.