Legislature creates bond authority

BT Catalyst, Jan-Feb, 2004

THE NORTH CAROLINA legislature approved creation of a Life Sciences Revenue Bond Authority to study ways to attract biomanufacturing companies to the state and to recommend specific incentive packages. The provision authorizes the authority to establish rules and procedures for the new financing program and to review pro forma proposals from potential applicants. The authority will report its findings to the legislature in May 2004.

Dr. Charles Hamner, president of the North Carolina Biosciences Organization (NCBIO), a statewide industry trade association, has been working to get a revenue bond authority established in North Carolina so construction costs of new biomanufacturing plants can be shared with banks and insurance companies.

"The bond authority will enable new companies that do not have financial backing to borrow money from banks to become product manufacturers," said Hamner. Proceeds would be straight loans for qualified companies that would not affect the state's credit rating, would be backed with mortgage insurance, and would have debt service reserve.

"By creating this bond authority, North Carolina will compete to be the number one biomanufacturing state in the world," Hamner said.