Sen. Tracy Pennycuick and Sen. Frank Farry introduced legislation on Apr. 21 to provide low-interest loans and loan guarantees for biotechnology and medical device projects in Pennsylvania, aiming to help companies cover costs related to Food and Drug Administration clinical trials.
The measure seeks to address a funding gap that affects small and medium-sized life sciences companies during the expensive development stages of new medical technologies. The proposal would create the Biobonds Innovation Fund, a revolving fund within the Department of Community and Economic Development, modeled after federal proposals designed to strengthen the state’s biotechnology sector.
“Pennsylvania is home to world-class universities, research institutions, and biotech startups. Yet many small and medium-sized companies face a significant financing gap during the most critical and expensive stages of development, FDA clinical trials,” Pennycuick said. “This stage often presents too much risk for traditional private capital, even when the underlying science provides promising potential for public health breakthroughs.”
She added: “The potential return on investment is significant. A single successful breakthrough supported by this program could generate hundreds of millions of dollars in economic activity, create high-quality jobs, and deliver lifesaving treatments to patients, while continuing to position Pennsylvania as a national leader in biomanufacturing and medical innovation.”
Farry said: “Bio bonds are a competitive tool that help unlock larger funding pools, enabling greater investment in early-stage life sciences while mitigating risk. Our goal is to keep these companies here in the commonwealth to drive economic development, create jobs, and most importantly advance life-changing breakthroughs that save lives.”
A lack of accessible capital can force innovative firms out of state or cause them to abandon projects or sell intellectual property prematurely.
Pennycuick has engaged in public service through her military career as well as roles on veteran boards supporting veterans and law enforcement according to her official website. She served 26 years in the U.S. Army—including active duty during Desert Shield/Desert Storm—and retired as a lieutenant colonel according to her official website. Pennycuick began her military career by enlisting as a combat medic before earning a Bachelor of Science degree from the University of Missouri-Columbia according to her official website.
She won election to the Pennsylvania Senate in 2022 after serving previously in the General Assembly according to her official website. Pennycuick resides with her husband—also an Army veteran—in Harleysville; they have four grown children and two grandchildren according to her official website.
Supporters say that establishing targeted financial tools like bio bonds could help keep promising innovations within Pennsylvania’s borders while creating jobs for residents.
