Pennsylvania SB 1285: An Act establishing the Biobonds Innovation Fund, the Biobonds Innovation Fund Loan Program and the Biobonds Innovation Fund Loan Guarantee Program; and providing for duties of Department of Community and Economic Development.

Bill Text

PRINTER'S NO. 1581
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1285
Session of
2026
INTRODUCED BY PENNYCUICK, FARRY, HAYWOOD, J. WARD AND VOGEL,
APRIL 14, 2026
REFERRED TO INSTITUTIONAL SUSTAINABILITY AND INNOVATION,
APRIL 14, 2026
AN ACT
Establishing the Biobonds Innovation Fund, the Biobonds
Innovation Fund Loan Program and the Biobonds Innovation Fund
Loan Guarantee Program; and providing for duties of
Department of Community and Economic Development.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Biobonds
Innovation Fund Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Clinical trial." A clinical investigation of a drug or
medical device under investigation in a controlled clinical
trial under any of the following:
(1) An investigational new drug application in effect
under 21 U.S.C. § 355(i) (relating to new drugs) or 42 U.S.C.
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§ 262(a)(3) (relating to regulation of biological products),
as applicable.
(2) An investigational device exemption in effect under
21 U.S.C. § 360j(g) (relating to general provisions
respecting control of devices intended for human use).
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Eligible applicant." A person, business, university or
research institution, nonprofit research organization or public-
private partnership with a physical presence in this
Commonwealth that conducts or seeks to conduct research with
respect to a drug or medical device that is, or is planned to
be, involved in one or more clinical trials.
"Eligible project." A project submitted by an eligible
applicant under section 4 or 5 for financial assistance to
support research or clinical trial-related activities authorized
by the United States Food and Drug Administration for a drug or
medical device that is the subject of a clinical trial.
"Fund." The Biobonds Innovation Fund established under
section 3(a).
"Loan." Financial assistance provided under section 4.
"Loan guarantee." A guarantee, insurance or other credit
support provided under section 5 to reduce the cost of capital
or enable financing for an eligible project.
Section 3. Biobonds Innovation Fund.
(a) Establishment.--The Biobonds Innovation Fund is
established as a separate fund in the State Treasury.
(b) Deposits.--The following shall be deposited into the
fund:
(1) Money appropriated by the General Assembly for the
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purposes of this act.
(2) Proceeds of BioBonds issued under this act.
(3) Repayments of loans, including principal, interest,
fees, penalties and other amounts received under section 4.
(4) Recoveries and proceeds arising from loan guarantees
under section 5.
(5) Private, Federal or other nonstate money accepted
for the purposes of this act.
(6) Interest earnings on money in the fund.
(c) Use.--Money in the fund shall be used solely for the
following:
(1) Loans.
(2) Loan guarantees and related credit support.
(3) The reasonable costs of implementing this act,
including underwriting, due diligence, monitoring, audits and
program evaluation.
(4) Payment of debt service or related costs.
(d) Continuing appropriation.--Money in the fund is
appropriated to the department on a continuing basis to
implement this act.
Section 4. Biobonds Innovation Fund Loan Program.
(a) Program established.--The Biobonds Innovation Fund Loan
Program is established within the department to provide low-
interest loans to eligible applicants for eligible projects.
(b) Guidelines.--The department shall prepare and adopt
guidelines establishing all of the following:
(1) Underwriting criteria and documentation
requirements.
(2) Review procedures, timelines and communications with
applicants.
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(3) Ranking and selection criteria under section 7.
(4) Monitoring, reporting, audit and compliance
requirements.
(5) Other guidelines as reasonably necessary to
implement the program.
(c) Applications.--The department shall develop and post on
its publicly accessible Internet website a rolling application
process for the program. At a minimum, an application shall
include all of the following:
(1) A project narrative and work plan.
(2) A project budget and statement of use of proceeds.
(3) Evidence of clinical trial status or the planned
submission timeline.
(4) Financial statements and a proposed repayment plan.
(5) A description of private capital leveraged, if any.
(6) Certifications and disclosures required by the
department, including conflict-of-interest disclosures when
applicable.
(d) Applicant requirements.--To receive a