Strategic Growth Loan (SGL)

Strategic Growth Loan (SGL) is sponsored by North Carolina Biotechnology Center (NCBiotech). The SGL supplements investments with angel or venture capital to fund life sciences companies that have established technical proof-of-concept and require further support to accelerate growth. This could apply to more developed cancer immunotherapy projects.

Type: Loan | Category: Business Loans The Strategic Growth Loan (SGL) program helps North Carolina life science companies reach specific and meaningful milestones that enable follow-on equity investment and/or commercialization. SGL awards of $350,000 to $650,000 requre an equity investment match of an equal or greater amount from a qualified investor or investor syndicate.

Higher value awards (up to $650,000) are reserved for exceptionally well-qualified applicants who have a matching investment from a top-tier life science investment group. To be eligible to apply for the SGL, it must meet the minimum criteria below: * Maintain a significant operating presence in North Carolina. All applicants are required to establish and maintain a business registration with the NC Secretary of State.

Preference will be given to companies that are engaged in significant research, product development, or manufacturing activity in North Carolina. * Be engaged in _life sciences_ research, development, or manufacturing to develop a product or technology with commercial potential. * If company has previously been awarded an NCBiotech SRL, all SRL milestones have been successfully met.

If company is a first-time applicant to the loan program, they must show evidence that significant traction has been achieved in meeting development milestones (e.g., strong advanced preclinical data or early clinical data). * Have a well-rounded and dedicated management team and a comprehensive business plan and/or model for commercializing the product.

* Own or have a _valid license(s)_ to the relevant intellectual property necessary for successful product commercialization and a well-developed IP strategy. * Have obtained a matching investment (minimally, a commitment for a near-term investment) from an accredited investor or investor syndicate, at least equal in value to the amount being sought under the SGL.

Matching investor(s) should have significant life sciences investing experience and is expected to conduct formal due diligence. **NCBiotech determines compliance with these requirements in its sole discretion on a case-by-case basis. ** _**Pre-Application**_**:** Pre-applications are accepted by invitation only following qualification of the applicant’s eligibility.

Applicant eligibility is assessed by meeting with one or more members of the Investments team, after which qualified applicants are invited to apply into the nearest quarterly round. Pre-applications should describe the company’s management, technology, proposed project, and budget.

_**Full Application**_**:** Following competitive review of pre-applications, the strongest applicants will be invited to submit a full application further describing the company’s commercial opportunity, development and financing strategies, and other supporting documentation.

_**Review and Approval**_**:** Following competitive review of full applications, the strongest applicants will enter due diligence with a member of the Investments team to further evaluate the team, technology, and commercial potential. Final funding recommendations will be presented to NCBiotech senior leadership and a subcommittee of its Board of Directors for final review and approval.

**Application Deadlines:** The Strategic Growth Loan consists of: * A senior loan with favorable terms including: * Five-year, fixed-term balloon note * Interest rate equal to the current Wall Street Prime rate plus 2%, with a maximum rate of 7% * A warrant to purchase company stock **For all SGL inquiries, please contact loans@ncbiotech.

org** Type: Loan | Category: Business Loans **Maximum Award:** $650,000 **Contact:** loans@ncbiotech. org