WALTHAM, MA—The life sciences industry is a key sector that is fueling significant economic growth in Greater Boston, Cambridge and now even into the outlying suburbs. A critical requirement for this burgeoning industry is access to capital.

At year's-end, the Massachusetts Life Sciences Center announced the launch of the 12th round of its Accelerator Loan Program that provides working capital to early stage life sciences companies in the state.

In the latest round, the Accelerator program will offer loans of up to $750,000 per company. To date, the Accelerator Loan Program has funded or committed to fund $21.7 million in loans to 31 companies that have generated more than $200 million in additional equity or acquisition proceeds. Through the MLSC, the state of Massachusetts is investing $1 billion to strengthen and expand the state's life sciences' sector. These investments are being made under the Massachusetts Life Sciences Initiative, approved by the State Legislature in 2008.

Eight companies that secured Accelerator funding—Good Start Genetics, InVivo Therapeutics, 4s3 Bioscience, Pluromed, MoMelan, Avaxia Biologics, Sample6 and AesRx—have paid back their Accelerator loans early with interest. The program has supported the commercialization of new products from additional companies such as Cristcot, Myomo, and Allurion, MLSC officials state.

"It is critical that we maintain a vibrant and dynamic community of early stage companies in order for the Massachusetts life sciences ecosystem to remain strong and competitive," says Travis McCready, president and CEO of the MLSC. "Filling the gap in early-stage financing will be an ongoing priority for the MLSC. The Accelerator Loan Program is one way we will help promising young companies grow and commercialize their technologies, and create jobs here in Massachusetts while helping to bring new medical technologies to patients around the world."

The life sciences sector's growth has caused fierce competition for space, particularly for lab space in Greater Boston and Cambridge. Brokerage firm Transwestern issued a report in September that noted availability for lab space in Greater Boston hit an all-time low of 9.3%. Citing figures from PwC the report stated that the previous two quarters of 2015 produced 33 IPOs, which raised $2.5 billion industry-wide. Venture capital funding totaled almost $4 billion from 254 transactions in the first half of this year and low interest rates swelled mergers and acquisitions volume to a record-breaking 81 deals representing $238.5 billion in activity. However, a lion's share of that financing went to life science companies that were in later stages of development. The MLSC loan program funding is geared for early stage life science companies.

Applications for the Accelerator loan program are due by 12:00 p.m. on Feb. 5, 2016, on the MLSC's web site at www.masslifesciences.com. Final awards are scheduled to be announced by the MLSC's Board of Directors in May 2016. Information sessions for potential applicants will be held throughout January in various locations and online, MLSC states.

The number of awards will be up to the award reviewers and the MLSC Board of Directors. The Board of Directors authorized up to $7 million for the organization's two early-stage funding programs to be divided between its Accelerator Loan Program and Milestone Achievement Program, Angus McQuilken, vice president for communications & marketing for MLSC, says. The Milestone Achievement Program is also for early-stage life sciences companies and awards range from $50,000 to $200,000. The final split between the two programs will be determined as an outcome of the review process, McQuilken adds.