Ben Franklin Technology Development Authority COVID-19 Venture Loan Program (BCVL)
The Ben Franklin Technology Development Authority COVID-19 Venture Loan Program (BCVL) is a Commonwealth of Pennsylvania initiative intended to address the financing needs of technology-oriented businesses by increasing the amount of risk capital available. The BCVL operates pursuant to the statutory authority of the Ben Franklin Technology Development Authority (“BFTDA”). The goal of the BCVL is to immediately offer, in aggregate, $10 million to authorized managers of venture capital firms in order to assist venture portfolio companies located in Pennsylvania, allowing these companies to continue to operate despite challenges related to COVID-19.
Venture Capital Firms possessing the following are eligible:
- Be the General Partner of a venture capital fund that received BFTDA venture loan funding during or after calendar year 2015. Also, the bank account, that was established in relation to original BFTDA funding, must currently be available.
- Prior to year-end 2019, the manager shall have submitted a PA Activity Report to DCED staff, dated as of June 30, 2019.
- The financial resources to match the BFTDA’s loan commitment on a 1:1 basis utilizing non-BFTDA capital.
For purposes of this program, the BFTDA seeks to lend funds to venture capital funds. BCVL funding will be provided in the form of a loan. The Commonwealth of Pennsylvania and/or the BFTDA is prohibited from holding an equity position and; therefore, is not a traditional limited partner but a Lender.
- Eligible managers may apply for funds pertaining to active companies listed on their PA Activity report as of June 30, 2019. To a lesser extent, plans to fund new companies will also be considered.
- Each manager is entitled to apply for a portion of the $10 million BCVL pool. The dollar amount for which each manager is eligible to apply will equate to 10% of that manager’s PA invested amount, as listed on the manager’s PA Activity report, dated June 30, 2019, and this maximum amount will pertain only to the manager’s relevant fund that was sponsored by the BFTDA during or after calendar year 2015. The PA invested amount will be reduced by the equivalent invested cost of any company named on the report that has been exited. Total loans granted to each manager will range between $200,000 and $1.5 million, inclusive.
There is no limit to the number of companies on whose behalf a manager may apply.
How to Apply
Comprehensive information is contained in the Program Guidelines. DCED will issue an invitation to apply should you be deemed eligible to participate in the program.
You need to complete Appendix A – Litigation Questionnaire and your application as outlined in Section II-A of the guidelines. Kindly email it to DCED’s BCVL Resource Account: DCEDVentureInvest@pa.gov.