HARRISBURG PA – Two Pennsylvania state senators have proposed legislation to provide low-interest loans and loan guarantees to qualifying biotechnology and medical device projects. The money and guarantees are intended to help companies cover the costs of clinical trials, and ultimately strengthen the state’s biotechnology and life sciences businesses.
24th District Sen. Tracy Pennycuick, who represents residents in western Montgomery and eastern Berks counties, and 6th District Sen. Frank Farry in Bucks County, are suggesting the creation of a “Biobonds Innovation Fund.” It would assist “promising medical innovations reach the marketplace,” they say in a Tuesday (April 21, 2026) media release.
The self-sustaining revolving fund is modeled on a similarly proposed federal bill, the “LOANS for Biomedical Research Act.”
Pennsylvania’s proposal would be limited to offering assistance to only eligible small- and medium-sized Commonwealth-based firms. Some “face a significant financing gap” – paying for clinical trials – “during the most critical and expensive stages of development.” Pennycuick reports “this stage often presents too much risk for traditional private capital,” even if it could result in public health breakthroughs.
“The potential return on investment is significant,” Pennycuick adds. “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.” It also could reinforce the state’s position as a national leader in bio-manufacturing and medical innovation.
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Designed to Leverage Private Capital
Farry and Pennycuick say a lack of accessible capital can force companies to relocate out of state, delay or abandon development, or sell intellectual property prematurely. The senators also note the program is designed to leverage private capital, not replace it. They suggest biobonds will lower project risk and attract additional private investment.
Before the proposal can become law, it must pass through one or more Senate committees and be similarly approved by state House committees. It then must be approved by both chambers in full, and be signed by the governor.
Our local reporting includes news about businesses and commercial ventures within, or that affect residents of, Montgomery, Berks, and Chester PA counties. Find more business articles here.
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