In just seven months, the New Orleans BioFund, a loan program created by the BioInnovation Center to support growing startups, has distributed over $1 million to help fund local entrepreneurs across multiple industries that may not necessarily qualify for traditional financing options.
The BioFund provides low-interest, flexible term loans for small businesses and startups in New Orleans. It was created to support these businesses who are tirelessly working to achieve growth, create jobs and contribute to the economic growth of the city.
“These loans have helped to grow and sustain several small businesses,” said BioFund Manager Kris Khalil. “We have now directly contributed over $1 million to the local economy and have supported the creation of numerous long-term, high-wage job opportunities within and outside of biotech.”
The BioFund is responsible, in part, for the build out of the 10,000-square-foot Propeller accelerator and business incubator. The capital the Fund provided supported the furniture and fixtures for the space.
Earlier this year, a company formed out of Tulane University, Advanced Polymer Monitoring Technologies (APMT), also received capital through the BioFund. The funding allowed the company to complete initial tech development and demonstrate proof of concept for their product.
The $2 million milestone is expected to be reached towards the end of 2013 as more applications are in the current pipeline for the BioFund.
The BioFund is funded by the U.S. Department of Housing and Urban Development and the Louisiana Office of Community Development’s Disaster Recovery Unit. The Fund closed its first deal in late 2012 and now loans sums ranging from $50,000 to $250,000 to fund equipment and sales inventory purchases.
For more information, visit www.neworleansbio.com.