The Washington State Department of Commerce today announced $1 million in grants to The Washington Research Foundation, Greater Spokane Incorporated and Life Science Washington Institute to support small business development programs in the life sciences and health IT sector.
The Washington Research Foundation was awarded $800,000 to establish a new Life Science Revolving Loan Fund (LSRLF) that will help early-stage Washington-based companies succeed and compete for growth capital.
Washington entrepreneurs face a highly competitive landscape and great financial risk as they develop their businesses. Companies that qualify for LSRLF funds will be positioned to achieve a significant milestone, such as proof of concept, in vitro testing, product development or market testing. Successful milestone progress is expected to position the company to secure further funding and greater stability. If and when the business generates enough revenue, money paid back to the fund is reinvested to help other small Washington state businesses in the future. Initially, the Life Science Revolving Loan Fund is a pilot program.
Washington’s life science industry is highly competitive, with Seattle recently ranked the #1 emerging life science hub in the country by CBRE Group with employment growth just under 18% from 2014-17. Life Science Washington reported 13% job growth in the overall state’s industry in the same period. This new funding will help entrepreneurs leverage work at the state’s two top medical schools at the University of Washington and Washington State University to bring innovative new products and services to market.
“Nurturing innovators in the formative stages is critical for the long-term vitality of our life science and global health sector, estimated to be the fifth-largest industry sector in Washington,” said Commerce Director Lisa Brown. “The economic impact from hundreds of biopharma and medical device companies, dozens of non-profit organizations and research institutions strengthens communities all over the state.”
Ron Howell, CEO of Washington Research Foundation (WRF), said, “The revolving loan fund is a great opportunity for WRF to partner with the state. We are closely aligned with investing in Washington-based life-sciences startups. In addition to the obvious benefits of job creation to the local economy, these startups are often the most effective way to get much-needed products and services into the hands of the public.”
