As an attempt to facilitate the stem cell research in the state, a leading advocate in New Jersey has decided to encourage the private investors to bankroll stem cell research loans. Democratic Assemblyman Neil Cohen has proposed legislation that would permit investors to contribute money to the state Economic Development Authority. It would, in turn, provide $100 million in stem cell research loans annually. Some money would have to go to non-profit and academic research projects. Research loans would not exceed $50 million per project per year.

Needless to say that New Jersey is the first state to go for such an approach. California plans to spend $3 billion on it, while Connecticut has a $100-million program and Illinois and Maryland have awarded $15 million in grants. Those states are relying on taxpayer funding for their programs.

The plan will allow the investors to get tax credits equal to their contribution to the fund, if a research project failed to repay the loan. The credits wouldn’t exceed $100 million annually. Cohen said he plans to meet with investment banks to discuss his legislation in the coming weeks. The plan has already drawn interest from New Jersey-based NW Financial Group. The firm’s managing director, Michael Hanley, said the legislation would allow it to compete with others to attract biotech jobs.

Source: The Canadian Press