Loan Application and Approval Procedures
Candidate companies may approach the Biotechnology
Center for the SGL either independently or through the referral of another investor. However, any such referral
is not to be construed as a “recommendation to fund”.
Conversely, candidate companies may approach VC’s/angel
networks independently or through the referral of BTD
staff, again with such referral not being construed as a
“recommendation to fund.”
Candidate companies should contact Business and Technology Development staff to determine the process of applying for the SGL.
The SGL will be in the form of an unsecured loan with
favorable, market-competitive terms (5-year balloon
payment; and warrant coverage equaling 25% of the loan
amount). An approved SGL must be matched by another
loan or investment of equal amount. Thus, a commitment
from an angel network or VC will be required prior to the
Biotechnology Center awarding the SGL. Closings for the
Biotechnology Center and the other investor will coincide.
If the SGL is approved prior to the investor close, the SGL
closing will not take place until the investor closing.
Existing investments made by a VC, angel, or angel network in a candidate company prior to its application for the SGL will not constitute concurrent investment and will not count toward the matching fund requirement.
The Biotechnology Center will provide its funding to the company upon signing of the agreement covering the loan or will be traunched in accordance with the other investor’s funding scheme.
Loan Maintenance Procedures
SGL recipients will be required to provide the
Biotechnology Center with updates of progress made
toward the Fundable Event.
Upon the achievement of the Fundable Event, the
company will notify the Biotechnology Center in writing of
its achievement.