Program Description
The pace of technology development initiated through a federal Small Business Innovation Research (SBIR) Phase I loan often slows when the Phase I activities are completed and as the recipient company is preparing a Phase II application for submission and evaluation.
The Biotechnology Center’s SBIR Bridge Loan Program is designed to help companies maintain technology-development momentum through the inevitable gap between phases of federal SBIR funding. The qualified applicant is a North Carolina biotechnology company that has successfully completed an SBIR Phase I grant project and intends to apply for Phase II funding.
A company applying for an SBIR Bridge Loan is required to submit a research proposal that represents an extension of the SBIR Phase I project. This project and justification are subject to a thorough evaluation and due diligence effort before a funding decision is made.
Bridge loan funding is meant to support translational projects that contribute data that can be used to either contribute to a competitive Phase II grant application or enable complimentary research activities that represent a logical and critical extension of the Phase I project.
Support
A company may request up to $75,000 to support research activities lasting up to six months. These funds may be applied to the direct costs associated with research and development activities that refine Phase I project results and/or initiate work on Phase II project objectives.
Due to legal constraints, funds provided under the bridge loan funding cannot be used for certain purposes. Prohibited charges include (but are not limited to):
- Purchase or lease of real estate, building construction or renovations
- Salary for administrative personnel (for entrepreneurs serving in both administrative and research capacities, salary funds may be requested for the portion of time the individual actually devotes to technical and research-related activities)
- Overhead or indirect costs at a rate greater than allowed by the federal agency who approved the Phase I award
- Patenting costs
- Subcontracts in excess of $500 for personnel, facilities, equipment or services located outside North Carolina unless approved in advance, in writing, by Biotechnology Center staff
- Specific activities for which sufficient SBIR funding has already been secured. A company may choose to apply to multiple agencies for funding consideration for a given project. However, accepting redundant support for identical activities is not permissible and requires an adjustment to the specific aims of one of the proposals.
Fifty percent of the loan amount will be distributed following the loan approval. An additional 40 percent will be released upon receipt and approval of a mid-term project report. The final 10 percent will be distributed upon receipt of a final project report.
Contact
Contact Shobha Parthasarathi at (919) 541-9366 or shobha_parthasarathi@ncbiotech.org with questions regarding this program or to schedule a preliminary meeting.