Ben Franklin Save Our Startups (SOS) initiative

With $1 million in new capital committed by the Pennsylvania Department of Community and Economic Development (DCED), $1 million from Ben Franklin, and additional capital being raised from other organizations, SOS will devote 100% of this capital to startup companies in our five-county region of Philadelphia, Bucks, Chester, Delaware, and Montgomery counties. SOS supports companies unable to access funding through the recent business support channels, whose structures often do not support early-stage innovation-focused firms.

FAQs

Q: How will SOS work?

A: Ben Franklin will deploy capital through SOS Loans and SOS Grants.

SOS Loans: SOS loans are targeted to provide capital to current Ben Franklin clients.

  1. Loans are for amounts between $50,000 and $150,000
  2. Loans are for a term of up to 3 years at 0% interest.
  3. Loans will be convertible into equity or renegotiated if unpaid at the end of the term.

SOS Product or Technology Development Grants: may be awarded either to current Ben Franklin clients or to other qualified companies in Southeastern PA. 

  1. SOS Grants will be in amounts between $10,000 to $20,000
  2. SOS Grants will be directed to companies whose work demonstrates the ability to accelerate the development of COVID-related technologies through direct connections to sector-specific service providers in the Ben Franklin PRIMA program.
    • Technology being advanced under the grant should directly address pandemic-related needs.
    • New and existing portfolio companies must meet the COVID-specific selection criteria detailed in the application, including need and relevance to COVID.

Applying: Companies in the Ben Franklin portfolio may apply for EITHER an SOS Loan or an SOS Grant. Companies may not apply for both Programs.

Q: Who will qualify?

A:  Funding awards will be on a competitive basis. Due to extremely limited resources available to the SOS Programs, an applicant for funds may be denied such funds notwithstanding that the applicant otherwise meets the eligibility criteria for Program funding. Funding preference will be given to companies headquartered in Southeastern PA with 50 or fewer full-time employees worldwide at the time of submission.

SOS Funds are targeted to those companies that:

  • Demonstrate a negative impact from the COVID pandemic. This can be defined as one or more of the following: economic, workforce, market, financial, product, etc.
  • Outline a well-defined use of proceeds that allows the company to survive the near-term (12 months) impacts of COVID.
  • Sustain and/or create jobs in the Southeastern PA region (Philadelphia, Bucks, Chester, Delaware, and Montgomery counties).
  • Have not received other significant public COVID-related support.
  • Have not recently closed significant private financing.
  • Can articulate their ability to have a long-term, positive economic impact in a post-COVID world (as varied as health, digital health, distance learning and robotics).

SOS Product or Technology Development Grants provide matching funds for companies to work with a PRIMA partner facility to move their technology towards commercialization:

  • Technology being advanced under the grant should directly address pandemic-related needs.
  • New and existing portfolio companies must meet the COVID-specific selection criteria detailed in the application, including need and relevance to COVID.
  • Grants are for up to $20,000 and are provided to the PRIMA partner, to carry out the company project, if approved.

Q: What will disqualify?

A: Disqualifying factors:

Taxes Current. The borrower and its principals must be current in payment of all applicable federal, state and local taxes unless they have entered into a workout agreement satisfactory to the respective taxing authority and are fully in compliance with the terms of that agreement.

Q: What is the process and timeline?

A: Ben Franklin has developed a separate, streamlined loan document and fast track review, approval and documentation process for the SOS program.

  1. Applications for both SOS Loans and Grants should be made to Ben Franklin by Wednesday, May 13th, 2020. IN NO EVENT WILL APPLICATIONS THAT ARE RECEIVED AFTER THAT DATE BE CONSIDERED.
  2. Applicants who cannot be considered will be advised by Wednesday, May 20th, 2020.
  3. Applicants whose submissions are being considered may be contacted for further information by Wednesday, June 3rd.
  4. It is anticipated that all awards will be made and documented by June 30, 2020.

Due to limited resources available to this SOS Program, an applicant for Program funds may be denied such funds notwithstanding that the applicant otherwise meets the eligibility criteria for Program funding.