Assemblyman Neil M. Cohen today has announced “New Jersey Stem Cell Research Assistance Act” today to help the research opportunity in Garden State. The act will encourage venture capitalists to invest in research funding. The bill would allow investors to contribute up to $500 million over five years to fund stem cell research in New Jersey. Cohen,a prominent supporter of stem cell research permitted stem cell research in New Jersey as well as the laws creating umbilical cord blood collection centers and world-class stem cell research facilities in the state.

Cohen said that his idea to use venture capital as a means of stem cell research funding came after he read about investment firms funding economic development in other states. Cohen moreover says he plans to meet with Wall Street investment banks to discuss his legislation next weeks. Reacting to the act, New Jersey-based NW Financial Group, LLC, an investment company, said that the act will help the economy of the state.

As a part of the bill, New Jersey Economic Development Authority (EDA) will establish a “New Jersey Stem Cell Research Assistance Program.” Interested financiers would be able to deposit up to half a billion dollars into the fund in $100 million installments over five years. Interested researchers would submit loan applications to EDA, detailing the type of adult or umbilical cord stem cell research to be conducted and the amount of funding requested. EDA would review individual research grant applications, in conjunction with the New Jersey Commission on Science and Technology, and distribute money from the fund on a case-by-case basis.

The bill will encourage venture capitalists to participate, the measure also would grant investors tax credits equal to their contribution in the fund. These credits, which would not exceed $100 million annually, would only be issued if a funded research project failed to repay the loan or otherwise collapsed.

Source: politickerNJ.com