Young companies are always looking for sources of capital, but many are unaware of funding sources provided by governmental programs. These programs are typically targeted at specific sectors and are intended to create jobs in the particular state or locality offering the incentives. Massachusetts offers several great examples.
In an effort to encourage development of life sciences research, development and manufacturing in Massachusetts, the Commonwealth established a $1 billion program that includes grants, loans and loan guarantees. The Massachusetts Life Sciences Center website (www.masslifesciences.com) provides a useful guide to these programs, including the Accelerator Loan Program, which provides working capital loans of up to $1 million, and a Small Business Matching Grant Program, which provides emerging life sciences businesses ready to start production with up to $500,000 in grant funding.
Another targeted program in the Commonwealth is the Massachusetts Clean Energy Center (www.masscec.com). The CEC also provides loans and grants to Massachusetts companies in the clean energy space, such as the Catalyst Program, which provides early stage researchers with grants of up to $40,000 to help demonstrate the commercial viability of their clean energy technology. A third agency with a much broader mission is Mass Development (www.massdevelopment.com), which has a wide range of programs, ranging from traditional revenue bonds to loans to specialized programs, such as the Emerging Technology Fund. This fund provides loans or loan guarantees of up to $1.5 million to tech companies starting or expanding manufacturing programs in Massachusetts.
This describes just a few of the programs each of these agencies offers, and many states offer similar incentives. One of these programs can be an important piece of the financing puzzle when moving an emerging company to the next stage. Foley has many years of experience in working with many of these agencies and programs, and can work with you to find the right fit.