In the near future, we plan to introduce legislation that would establish the Biobonds Innovation Fund, a targeted economic development tool designed to strengthen Pennsylvania’s biotechnology and life sciences ecosystem by helping promising medical innovations reach the marketplace.

Pennsylvania is home to world-class universities, research institutions, and biotech startups. Yet many small and medium-sized companies face a significant financing gap during the most critical and expensive stages of development, FDA clinical trials. This stage often presents too much risk for traditional private capital, even when the underlying science provides promising potential for public health breakthroughs.

This lack of accessible capital can force promising companies to relocate out of state, delay or abandon development, or sell intellectual property prematurely. As a result, Pennsylvania loses jobs, economic growth, and the opportunity to solidify its leadership in groundbreaking medical innovation.

Our proposal would establish the Biobonds Innovation Fund, modeled after the proposed federal LOANS for Biomedical Research Act, to address this gap by establishing a self-sustaining revolving fund within the Department of Community and Economic Development. The fund will provide low-interest loans and loan guarantees for eligible Commonwealth-based biotechnology and medical device projects to assist with FDA-related clinical trials costs.

Importantly, this program is designed to leverage private capital, not replace it. By serving as cornerstone financing, Biobonds will help de-risk projects and attract additional private investment, multiplying the economic impact of each public dollar.

The potential return on investment is significant. A single successful breakthrough supported by this program could generate hundreds of millions of dollars in economic activity, create high-quality jobs, and deliver lifesaving treatments to patients,  while continuing to position Pennsylvania as a national leader in biomanufacturing and medical innovation.

Please join us in co-sponsoring this important measure.