Delaware launches a pilot grant program designed to promote private-sector-led projects that help the state attract and retain science and technology companies by expanding inventory of ready-to-use lab spaces. did.
The State Development Finance Council allocated up to $ 3 million from the Delaware Strategic Fund in December. In a state speech on January 26, Governor John Carney promised to include additional funding from the 2010 budget.
The Delaware Prosperity Partnership is ready to begin reviewing companies to ensure they are at the right stage to be eligible for a grant. To apply, companies need to partner with developers on specific projects. The state will begin reviewing as soon as qualified applicants complete the review process, said Ariel Gruswitz, DPP’s Innovation Director. Companies and developers interested in finding out more or applying for a grant can contact Grusswitz at agruswitz @ choosedelaware.com.
According to Gruswitz, he was working on two challenges. There is not enough ready-to-use lab space. This is a challenge facing all states due to growing demand from bioscience companies. Second, many Delaware developers haven’t undertaken these types of projects so far due to the complexity and higher cost of increasing inventory in their lab space.
Gruswitz added that some companies that DPP wants to help have no cash flow to justify building lab space and tend to use capital to bring their products to market. ..
She said she was looking for a company that needed help in preparing her product for commercialization. We want to improve the inventory available in the state and continue to support companies that have already invested or are interested in coming to Delaware for high-paying jobs such as those found in this type of business. ..
In the long run, the need for programs should diminish as infrastructure grows and industry needs are better understood by the local commercial real estate market, Gruswitz said.
The CDF previously supported state efforts to build space for early-stage ventures, including two incubators with wet labs (Deraware Innovation Space and DTB @ STAR, an affiliate of Delaware Technology Park). I’ve been doing it. In addition, Delaware has several large global leaders in research and development, including companies such as Gore, FMC, DuPont, The Chemours and Insight.
The challenge is what happens to a successful startup as it grows and needs to expand from the incubator or other early stage space. This pilot program is an important next step in supporting a growing startup in Delaware.
The new program will provide companies with up to 33% of the cost of installing lab space. Developers are another reason if the original user grows out of the lab space or moves. If these efforts are unsuccessful, the state will provide the building owner with some of the lost rent as a temporary measure. This keeps the infrastructure as a state asset to support continued industry growth.
From 2018 to 2019, DPP assessed inventory and surveyed more than 60 Delaware organizations to assess current and future lab space needs. According to Gruswitz, about 12 of the corresponding existing entities have identified that they will need at least 150,000 square feet of lab space over the next few years.
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