North Carolina Launches $85 Million Biotech Initiative

Golden LEAF, the statewide foundation established in 1999 to use one-half of the state's tobacco settlement for the long-term economic advancement of North Carolina, has announced an $85.4 million economic stimulus package it believes will significantly improve North Carolina's economy and make the state a leader in the biosciences industry. Foundation officials anticipate the public investment stimulating at least $350 million in new private and federal funding biotech activity in the state.

The centerpiece of the package is a commitment to invest $42 million in bioscience/biotechnology companies developing or manufacturing their products in North Carolina. If those investments are successful, the Golden LEAF Board anticipates making additional investments of $108 million over the next six years, bringing its total investments in the bioscience sector to $150 million.

Other elements of the package include:

• a $10 million investment in a proposed biodiesel plant in Eastern North Carolina, which Golden LEAF officials say will be a boon to soybean farmers and put the state on the cutting edge of the alternative fuels industry.
• $10 million for jobs training, primarily through the North Carolina Community College System but including the state's universities and other training providers. A total of $5.5 million will be used to support training initiatives required by industries looking to start up, expand or relocate in North Carolina — $3.5 million for industry-specific training and $2 million to support industry-cluster training in a particular region. This initiative also will include money for research and development and a reserve fund to assist governmental agencies and nonprofits with predevelopment costs associated with industrial relocations and expansions.
• $3.4 million for the North Carolina Rural Economic Development Center to create a loan loss reserve for the Rural Center's second Capital Access Program. This program will prompt lenders, such as commercial banks, to extend credit to borrowers who might not qualify for traditional loans.
• $5 million to help local governments and regional economic development partnerships finance the certification of industrial sites. North Carolina has a shortage of certified industrial sites, compared with other states, and is operating at a disadvantage, the foundation believes.
• The final component of the economic stimulus package is the planned round of approximately $15 million in annual grants to be made in November. The Foundation received 346 grant proposals by the August 1 deadline.

$52 million of the package is in the form of equity or debt investments in new ventures. It represents an effort by the Foundation to invest some of its resources in projects that not only will generate income for the Foundation but also encourage investments in North Carolina, create jobs, generate tax revenues, and boost the state's economy.

More information is available at: http://www.goldenleaf.org/