Accelerator Loan Program Announced
The Massachusetts Life Sciences Center has announced the launch of the Fall 2010 Accelerator Loan Program. The Accelerator program reflects the Center’s ongoing commitment to supporting early-stage life sciences companies that will grow employment opportunities and stimulate innovation across the Commonwealth. The primary objective of the Accelerator Loan Program is to provide working capital to early stage life sciences companies that still are in the process of further developing their science/technology and have not yet raised more than $7.5 million in equity financing.
The Center is targeting a 2010 investment of $5.5 million for the program. For the spring round of the 2010 Program, the Center funded one million seven hundred and twenty-five thousand dollars ($1,725,000) and for this fall round of the 2010 Program, three million seven hundred seventy-five thousand dollars ($3,775,000) has been allocated for awards.
Accelerator Program loans are capped at $750,000 per company. Target applicants generally are early-stage life sciences companies with a high potential for technology commercialization, rapid growth, and private equity financing. The Accelerator Program is designed to help sustain these companies through a critical stage of development and financing.
To date the Center has funded ten companies for a total of $5.125 million in loans. One 2009 awardee, Boston-based Good Start Genetics, repaid their loan with interest in September of 2010 after raising $18 million in equity financing.
If you meet any of the following criteria, you are not eligible to apply to this program:
1. You received a prior award under the Center’s Accelerator Loan Program
2. You received an award under the Center’s Small Business Matching Grant Program
3. You have raised $7.5 million or more in total equity financing
4. You are majority owned (greater than 50%) by a parent company that is an operating or holding company and
-Have raised $7.5 million or more in total equity financing, or
-Have received $7.5 million or more in financing from your parent, or have raised/received $7.5 million or more as a combination of 1. and 2. above
5. You are majority owned (greater than 50%) by a parent that is an investment company, investment partnership, or investment fund and have received $7.5 million or more in financing from your parent
The Life Sciences Center has established a web-based interface where companies can apply for a loan under the Life Sciences Accelerator Loan Program. Applications are now being accepted, and are due by November 29, 2010 at noon. The Center anticipates that awards will be announced on March 23, 2011. Applications may only be submitted online through the link below and the Center will not accept paper submissions.
To obtain more information and/or to apply to the Accelerator Loan Program, please visit the Center’s web site: www.masslifesciences.com. The Center will be offering information sessions for interested applicants. Details about the information sessions will be announced on the web site.