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New Jersey to Stimulate Biotech Business, Job Growth with $50M VC Fund

October 03, 2003

New Jersey is launching a new program to stimulate new investment, business growth and job creation in the biotechnology and life sciences industries through a special fund to be established through the Business Employment Incentive Program (BEIP).

The $10 million Biotech/Life Sciences Venture Fund, to be administered by the New Jersey Economic Development Authority (EDA), will be created out of proceeds generated from an estimated $50 million BEIP bond issue. The state plans to issue the remaining $40 million in November. EDA already manages the $10 million New Jersey Technology Council Venture Fund, which also supports start-up technology companies.

Under BEIP, program recipients receive a grant award for up to 80 percent of the income tax payments paid to the state on behalf of the eligible new jobs. The remaining 20-plus percent is considered the "residual" benefit to the state and will be leveraged to create special funds, the first one being the Biotech/Life Sciences Venture Fund.

New Jersey State Treasurer John McCormac said that state grants and loans provided through the fund will likely be matched by triple the level of investment from private sources.

Debbie Hart, president of the Biotechnology Council of New Jersey, called the $10 million program "an excellent start."

New Jersey