The Delaware General Assembly has approved an additional $10 million for the state’s lab grant program.
The program assists science-based companies and building owners in setting up lab facilities.
The program, which started last fall, is designed to spur private sector-led projects that will boost science and tech companies.
The Delaware Prosperity Partnership is responsible for vetting companies. To qualify for review, companies need to partner with developers on a specific project. Once a company completes the vetting process, the state is poised to review the qualified applicant, a release stated.
A 2018-19 study commissioned by DPP surveyed 60 Delaware science-sector organizations to gauge current and future lab-space needs. Roughly a dozen of the respondents identified a need for at least 150,000 additional square feet of lab space over the next few years.
“The pilot program was a response to increased demand for lab space from early-stage life science and biopharma companies in the region,” explained Becky Harrington, DPP’s director of Business Development. “Access to capital can present a barrier to growth as most companies in this phase of growth are focused on using their resources to get their product to market versus investing in facilities.”
The lab grant program is focused on companies poised to commercialize their products.
Offering grants that cover up to 33% of fit-out costs for lab space, the program requires that the landlord agree to make good-faith efforts to fill the space with lab tenants if the original user grows out of it or has another reason for moving.
If those efforts aren’t successful, the state will provide the building owner with a portion of the lost rent as a stop-gap measure to ensure that the infrastructure remains intact as an asset within the state.
“The lab grant program not only offers needed support for companies to grow their businesses here,” said Noah Olson, DPP’s acting director of Innovation, “but it should also build a greater awareness and understanding with landlords, brokers, and the real estate community about the distinctive needs of the lab-based science sector.”
Companies or developers interested in learning more or applying for the grant should contact Olson at nolson@choosedelaware.com.
