The Product Development and Small Business Incubator Fund offers long-term, asset-backed loans to near-bankable businesses commercializing new or improved products and small businesses or entities which foster growth of small businesses.
The program targets those businesses which may be unable to obtain full financing or financing on workable terms in traditional capital markets.
Who Can Apply?
Near-bankable businesses commercializing new or improved products in the state, small businesses, small business incubators and accelerators, and other entities which promote the development and expansion of small businesses in the areas of semiconductors, nanotechnology, biotechnology, or biomedicine. Products in the research and development phase are ineligible for funding.
Applicants must have at least 3 years of operating history and at least 1 year of revenue history.
Type of Incentive
Long-term, asset-backed loans fully secured by tangible assets, not to exceed $5 million. Interest rates on all loans are variable and generally below-market, comprised of a low weekly variable rate plus a risk premium determined by the Governor’s Office. Loan terms are capped based on use of funds, but are ultimately determined by staff in consultation with individual applicants. Loans can be flexibly structured based on the unique needs of applicants.