PENNSYLVANIA TECHNOLOGY INVESTMENT AUTHORITY'S GATEWAY PARTNERS LOAN PROGRAM (GATEWAY PARTNERS)

Description: This partnership is intended to foster a more attractive lending environment for early stage technology companies seeking soft asset financing.

Eligibility:

Technology companies must:

• Have already received a first round of private financing of a least $500,000
• Have at the minimum, a revenue-generating model clearly defined even if they have not begun to generate revenue
• Have limited cash flow/profitability but be able to demonstrate reasonable forecasts of profits/cash flow to reach key milestones
• Have a research and development component

Eligible Uses:

"Soft assets" would include:

• Leasehold improvements
• Furnishings
• Office equipment
• Other items associated with working capital

Where to Apply: MCIDC office

Amounts: Loans provided by the preferred providers in amounts ranging from $100,000 to $3 million

Terms/Conditions:

If the lending bank agrees to provide financing to a company, the lender may submit the proposed financing to the partnership for a guarantee ranging from 25% to 50% of the amount financed, depending on the total amount and purpose of the financing.

The technology company and the lender would pay an annual fee to the partnership for the guarantee (1.5% per annum on the guaranteed portion of the financing)

The lender would agree to provide a pro rata share to PTIA of any warrant or other equity mechanism taken as a condition of the financing.