The Small Business Research Loan program provides investments of $75,000 to $250,000 into innovative early-stage life science companies in North Carolina. The program supports:
- Business inception and related activities intended to help the company position itself for startup or early-stage funding or partnering.
- Research to advance development of commercially viable technologies and products.
Eligibility
For a candidate life science company to be eligible to apply for the Small Business Research Loan, it must meet the minimum criteria below:
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Have significant operating presence in North Carolina. To establish a significant presence, the company must: (a) maintain its head office (where 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 (b) conduct significant research, product development or manufacturing activity in North Carolina.
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Be engaged in life science research, development or manufacturing to develop a product or technology with commercial potential.
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Have achieved a robust technical and commercially promising proof-of-principle of its technology for the intended product or application.
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Have a committed, dedicated management team and a solid business plan.
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Have a valid license(s) to the relevant core intellectual property expected to be necessary for the company to commercialize its product or technology.
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Have at least one management team member in North Carolina significantly engaged, dedicating at least 30 hours per week to the company, and focusing on the company as his/her primary employment.
Funding level will be dependent upon company stage. For example, higher level awards will require the following:
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A committed, dedicated management team and a solid business plan.
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Robust technical and commercially promising proof-of-principle of its technology for the intended product or application.
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Completion 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
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 the company’s complete business plan, project proposal, financial statements and other supporting documentation.
Review and Approval: The investment 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 the NCBiotech’s senior leadership and/or a committee of its board of directors 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 5, 2018 | December 14, 2018 | March 2019 |
| February 11, 2019 | March 18, 2019 | June 2019 |
| May 22, 2019 | June 26, 2019 | September 2019 |
| August 14, 2019 | September 16, 2019 | December 2019 |
Loan Terms
The Small Business Research Loan consist of:
- A senior, unsecured loan with favorable terms including:
- Five-year, fixed-term with balloon payment at maturity for principal and accrued interest
- Interest rate equal to the current prime rate plus 2%
- A warrant to purchase company stock
Loan Disbursement
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 (Excel) include a detailed update of progress against proposed milestones with supporting data and actual spending versus budget. The Biotechnology Center will actively monitor the company’s progress until the SRL is repaid in full. Periodic progress reports and occasional site visits will be required.
More Information
If interested in an SRL, please contact the program director.
Small Business Research Loan (SRL)
Maximum Award: $250,000
Deadline: Quarterly
For questions or more information, contact:
Greta Brunet, MBA, PA-C
Senior Director, Investments
919-549-8868
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greta_brunet@ncbiotech.org