Accelerator Loan Program

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Program Overview

The Accelerator Loan 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 with a high potential for technology commercialization, rapid growth, and private equity financing.

Accelerator Program Loans are capped at $1 million per company. Generally, target applicants are early-stage life sciences companies. As defined in the Life Sciences Statute, life sciences means “advanced and applied sciences that expand the understanding of human physiology and have the potential to lead to medical advances or therapeutic applications including, but not limited to, agricultural biotechnology, biogenerics, bioinformatics, biomedical engineering, biopharmaceuticals, biotechnology, chemical synthesis, chemistry technology, diagnostics, genomics, image analysis, marine biology, marine technology, medical devices, nanotechnology, natural product pharmaceuticals, proteomics, regenerative medicine, RNA interference, stem cell research and veterinary science.” The Accelerator Loan Program is designed to help sustain these companies through a critical stage of development and financing.

To provide more information and answer any questions you may have, we typically offer information sessions throughout the state. All of the info sessions for this round have already been conducted. Please review the link to “Information Session Slides” for the presentation given at the info sessions.

Program to Date

To date, the Accelerator program has awarded $17.7 million in loans to 27 companies. Six of these companies, Avaxia Biologics, Good Start Genetics, InVivo Therapeutics, 4s3 Bioscience, MoMelan, and Pluromed, have paid back their Accelerator loans early with interest after generating more than $100 million in equity or acquisition proceeds.

Program Eligibility

Interested applicants will be required to submit an on-line application. Applications will be accepted via the MLSC application portal up until the deadline of February 3, 2014 at 12:00 noon EST.

For therapeutics companies, (defined as companies whose business goal is to develop a target compound that will be commercialized; may also be called “drug discovery” or “biotechnology”) the applicants should not have raised more than $15 million in total equity financing. For non-therapeutics companies, the applicants are companies that have raised no more than $7.5 million in total equity financing.

If you meet any of the following criteria, you are not eligible to apply to this program:

1. You received a previous 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 less than $300,000 in at-risk capital.

4. You do not have at least one W-2 full-time employee (for purposes of this program, employees are considered to be full-time if they work 35 hours per week or more for applicant company) that submits payroll tax to the Commonwealth of Massachusetts.

5. If you meet any of the following criteria, and you are a therapeutics company, you are not eligible to apply to the Life Sciences Accelerator Loan Program:

  • You have raised $15 million or more in total equity financing.

NOTE: If you reach the $15 million threshold prior to the closing and funding of the loan, you will become ineligible for an award under the program.

  • You are majority owned (50 percent or more) by a parent company that is an operating or holding company and
    • Have raised $15 million or more in total equity financing, or
    • Have received $15 million or more in debt/ financing from your parent, or
    • Have raised/received $15 million or more as a combination of the two previous bullet points.
  • You are majority owned (50 percent or more) by a parent that is an investment company, investment partnership, or investment fund and have received $15 million or more in financing from your parent.
  • You are not able to issue your own equity (stock or units of ownership).
  • A majority (50 percent or more) of your board members also serve on the board of your parent company or are employed by the parent company.
  • You are ineligible if any of your management team is employed by your parent company.

6. If you meet any of the following criteria, and you are a non-therapeutics company, you are not eligible to apply to the Life Sciences Accelerator Loan Program:

  • You have raised $7.5 million or more in total equity financing.

NOTE: If you reach the $7.5 million threshold prior to the closing and funding of the loan, you will become ineligible for an award under the program.

  • You are majority owned (50 percent or more) 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 debt/ financing from your parent, or
    • Have raised/received $7.5 million or more as a combination of the two previous bullet points.
  • You are majority owned (50 percent or more) 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.
  • You are not able to issue your own equity (stock or units of ownership).
  • A majority (50 percent or more) of your board members also serve on the board of your parent company or are employed by the parent company.
  • You are ineligible if any of your management team is employed by your parent company.

 

The Innovators; Massachusetts Life Sciences Center with CEO Dr. Susan Windham-Bannister & Guest Michael Koeris of Sample6 Tech. from REEL Entrepreneurs, Inc on Vimeo.

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