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.
This blog is made available by Foley & Lardner LLP (“Foley” or “the Firm”) for informational purposes only. It is not meant to convey the Firm’s legal position on behalf of any client, nor is it intended to convey specific legal advice. Any opinions expressed in this article do not necessarily reflect the views of Foley & Lardner LLP, its partners, or its clients. Accordingly, do not act upon this information without seeking counsel from a licensed attorney.
This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Communicating with Foley through this website by email, blog post, or otherwise, does not create an attorney-client relationship for any legal matter. Therefore, any communication or material you transmit to Foley through this blog, whether by email, blog post or any other manner, will not be treated as confidential or proprietary.
The information on this blog is published “AS IS” and is not guaranteed to be complete, accurate, and or up-to-date. Foley makes no representations or warranties of any kind, express or implied, as to the operation or content of the site. Foley expressly disclaims all other guarantees, warranties, conditions and representations of any kind, either express or implied, whether arising under any statute, law, commercial use or otherwise, including implied warranties of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Foley or any of its partners, officers, employees, agents or affiliates be liable, directly or indirectly, under any theory of law (contract, tort, negligence or otherwise), to you or anyone else, for any claims, losses or damages, direct, indirect special, incidental, punitive or consequential, resulting from or occasioned by the creation, use of or reliance on this site (including information and other content) or any third party websites or the information, resources or material accessed through any such websites.
In some jurisdictions, the contents of this blog may be considered Attorney Advertising. If applicable, please note that prior results do not guarantee a similar outcome. Photographs are for dramatization purposes only and may include models. Likenesses do not necessarily imply current client, partnership or employee status.