BIOSCIENCE FUNDING
The Life Sciences Facilities Fund (LSFF) and the Strategic Industries Loan Fund (SILF) provide low-cost financing as an incentive to retain and recruit qualified companies and can serve to fill a financing gap that is unmet by the private sector (e.g., venture capital, developer financing, commercial financing).
What types of companies are eligible?
To be considered for LSFF or SILF funding, companies must address a market need or opportunity within the life-science industry. SILF can also finance projects for companies in Georgia’s strategic industries of agribusiness, energy and environmental, and healthcare. Companies should be creating employment opportunities, making private investment and enhancing Georgia’s innovation economy through the creation of marketable products. Eligible borrowers must apply through a local government development authority, or a city or county.
How do the programs work?
A project may be eligible for only one of the programs, not both, depending on where in the state the project is located. (See below for information about eligibility for each program.) Applications may be submitted any time there is a viable project. Each project and company will be subject to a financial analysis, business-plan review and scientific validation (when needed) during the application-review process. Applicants must establish that the project has a sound scientific and technological foundation, that the company’s development/ commercialization or marketing plan is reasonable, that the company has access to capital that is sufficient to sustain its operations, and that the project will create positive economic benefits for Georgia. A recommendation from a state agency or organization whose powers or duties include community and economic development or the enhancement of Georgia’s technology sectors is required with the application; such recommendation should include a recommended loan amount and loan terms. There are no maximum loan amounts, although generally the loan amount will not be more than 25% of the fixed-asset needs of the company’s Georgia location. Loans will be secured, at a minimum, by the assets to be financed. Generally, loans to early-stage companies will contain at least one triggering clause that will require acceleration of the loan term in the event the company experiences a liquidity event. For example, a ten-year term might be accelerated to three years if the borrower company has an initial public offering, is acquired or receives regulatory approval for a product from a governing agency (e.g., the FDA or USDA).
Applications for financing
For further information, please visit the Life Sciences Facilities Fund or contact the Georgia Department of Community Affairs at (404) 679-4940.
For further information, please visit the Strategic Industries Loan Fund or contact the OneGeorgia Authority at 478-274-7734. Companies and development authorities or local governments interested in the Funds should contact the Georgia Department of Economic Development at 404-962-4000.