The state’s Economic Development Authority has awarded $46 million to 39 hi-tech companies in New Jersey through its Technology Business Tax Certificate Transfer Program.
The 20-year-old program enables qualified, unprofitable technology and biotechnology companies to sell net operating losses and/or research and development tax credits to raise cash to finance their growth and operations. In doing so, it allows startup companies to obtain non-dilutive capital that might be difficult to obtain through loans or private equity.
“For nearly 20 years, the NOL program has been cited by entrepreneurs as a key factor in the growth of their companies,” said Melissa Orsen, EDA CEO, in a press release. “The working capital the NOL program provides helps emerging companies add key staff or accelerate research and development efforts, spurring the continued growth of New Jersey’s technology industry.”
Among the companies awarded four-year old Acuitive Technologies, based in Allendale. The company develops material technologies to improve medical device performance and patient outcomes, and is participating in the program for the second consecutive year. It also benefited from the Angel Investor Tax Credit Program.
The full list of companies awarded can be found here.