FAQ
Basic Eligibility Requirements
What kinds of companies and ideas do you fund?
Our purpose is to fund technology-based, innovative start-ups and small existing manufacturers, who are in the process of developing a protectable or patentable product/process. If your new business idea involves a restaurant, hair salon, retail sales, or leisure time services, our program is not a good fit for your needs.
Where must my business be located?
Your business must be located in our 32-county geographic footprint in Central and Northern Pennsylvania which includes major cities like Altoona, Johnstown, Harrisburg, Lancaster, Erie, and York which are interspersed throughout an otherwise largely rural region. Click here for a list of our 32-county service territory.
What if my business is not located in your 32-county footprint?
Ben Franklin Technology Partners of Central and Northern Pennsylvania is part of a statewide organization dedicated to growing a Pennsylvania’s technology-based economy. If your company is in Pennsylvania but not our 32-county geographic footprint, you may contact one of our partner offices in the Lehigh Valley, Philadelphia or Pittsburgh.
BFTP/CNP Investment Strategies
What are your investment criteria?
CNP’s primary investment objective is to assist small business owners develop their products and grow their sales to the point where they can fund their growth internally, become eligible for traditional bank financing, or attract other follow-on funding opportunities.
What is the size of a typical BFTP investment?
We typically make investments that range from $50,000 to $150,000 per year for up to three years. Our funding relationship with any one company typically does not go beyond three years and has a maximum investment of roughly $450,000.
How do I apply for BFTP funding?
The first step is to call one of our local offices and set up a meeting to go over your business plan. Once you’re ready to move along, you’ll be asked to make a videoconference presentation to our staff. After a successful presentation, the next step is to submit a formal proposal. The proposal forms are available from any of the Ben Franklin offices, or can be downloaded from our website. After our internal review is completed, the proposal will be presented to our Board of Directors at the next quarterly meeting for final approval. If you are awarded funds, a Ben Franklin representative will explain the reporting process required and how/when the money will be distributed.
Do I have to pay back BFTP investments?
In general, for start-up and early phase companies the investment payback consists of a ten-year amortized loan at a rate of prime plus 2% with BFTP having the option to convert unpaid principal to equity. Company payback does not begin until BFTP funding ends. Interest does not accrue during the initial funding period or any subsequent funding periods that may occur. In addition, there are no application fees, points, or collateral required. If an early stage company is unsuccessful, the loan is forgiven. For existing manufacturers who borrow BF money to improve an existing product or process, payback consists of a five-year amortized loan at the prime rate on the date of funding approval. Interest does not accrue during the initial funding period or any subsequent funding periods that may occur.
How do you help companies prepare to raise additional follow-on funding?
The Ben Franklin Venture Investment Forum is an excellent resource for companies preparing to secure funding beyond BFTP. The Ben Franklin Venture Investment Forum helps entrepreneurs access outside investment, provides essential management-training, assists Angel Investors in making sound decisions and provides linkages between investors and promising early-stage companies,
What kind of services do you provide angel investors?
The Ben Franklin Venture Investment Forum works with angel investors and angel networks by providing assistance in network formation and management, researching and disseminating best practices, providing communications and networking among networks and offering training session on a variety of topics including fundraising presentation, how to determine a company’s valuation and the ins and outs of term sheets
Business Assistance
What kind of assistance do you provide early-stage and small, established companies beyond funding?
To augment and support the financial investments we make in our portfolio companies, we provide the Transformation Business Services Network (TBSN)–a seasoned and dedicated team of business professionals who offer their expertise in areas such as marketing, finance, human resource management, and accounting–free of charge to our client companies. TBSN invests upwards of 14,000 person-hours in its portfolio companies each year.
Can you help me write my businesses plan?
Ben Franklin partners with the area’s Small Business Development Centers who are expert in assisting in the process of writing a business plan.
Do you have a listing of resources that can help in creating my business plan?
We have links to numerous government, College/University, publication, fund and other resources on our website. Click here to view.
About Ben Franklin Technology Partners
How long has BFTP been helping Pennsylvania companies?
Our statewide economic development network was established in 1983. Click here to read our history.
Can BFTP’s impact be measured?
According to an independent study released in 2003, BFTP boosted Pennsylvania’s economy by $8 billion from 1989 to 2001. Every public dollar invested in BFTP yielded nearly $23 of additional state income. Further, Pennsylvania garnered more than $400 million in additional state tax revenues in this period, substantially more than the cost of the program.