Cabinet for Economic Development
CABINET AWARDS FUNDING FOR KENTUCKY HIGH-TECH COMPANIES AND MATCHING FUNDS PROGRAM
FRANKFORT, KY – The Kentucky Economic Development Finance Authority (KEDFA) today granted three Kentucky companies and the Kentucky Science and Technology Corporation (KSTC) a combined total of up to $3.9 million from the High-Tech Investment Pool, which is administered by the Cabinet for Economic Development’s Department of Commercialization and Innovation.
The three companies anticipate creating a combined 34 new high-tech jobs at an average salary of $59,000. The funding for KSTC is to continue the state’s unique program that matches federal funding to small businesses and to date has supported 57 projects at 37 different businesses and resulted in four high-tech companies relocating to Kentucky.
“The funding approved today by KEDFA is critical to maintaining support for Kentucky’s high-tech small businesses,” said Larry Hayes, interim secretary of the Economic Development Cabinet. “As these businesses grow and add jobs, the state funds invested will be returned many times over through the state taxes paid by the employers and employees.”
Projects receiving funding include:
· MedX12, Inc. – Louisville; MedX12 provides healthcare claims “clearinghouse” services that enable practitioners to electronically file claims with any insurer in the United States. MedX12 also offers or is developing other products and services for healthcare provider offices, including printing and mailing of patient statements, eligibility verification, electronic medical records, practice management software and credit card processing. The company primarily targets small- to medium-size practices. The funds, awarded in the form of a forgivable loan for up to $160,000, will be used to purchase computer equipment and infrastructure, as well as to protect intellectual property.
A client of the Louisville Innovation and Commercialization Center, MedX12 anticipates that in addition to the company’s existing workforce of three, it will create a minimum of 14 full-time, high-tech and technical support jobs for Kentucky residents by December 31, 2011. Average salaries for the new positions will be approximately $61,500, exclusive of benefits. MedX12 was also preliminarily approved by KEDFA for up to $360,000 under the Kentucky Jobs Development Act (KJDA) for a 3,550 square-foot expansion of its existing Louisville facility. The KJDA project could result in 32 new jobs in addition to the 14 high-tech jobs.
· LendingCycle, Inc. – Louisville; LendingCycle's web-based software enables collaboration and access to real-time information for all parties involved in the loan origination process. This includes both internal and external parties, such as the lending institution, loan processing staff and partnering institutions. Each party is granted access only to the information pertinent to its role in the lending process. The core technologies used in this collaborative workflow solution are translatable to many other sectors. The funds, awarded in the form of a forgivable loan for up to $119,000, will be used to obtain protection for the company’s intellectual property and software solutions.
A client of the Louisville Innovation and Commercialization Center, LendingCycle anticipates it will create a minimum of seven full-time, high-tech and technical support jobs for Kentucky residents by June 30, 2012, paying an average salary of approximately $61,000, exclusive of benefits.
· Transposagen Biopharmaceuticals, Inc. – Lexington; Transposagen’s initial products will be laboratory rats with single gene “knockouts” for use as models of human disease in research and drug discovery. Producing knockouts involves engineering an organism to carry a gene that has been rendered inoperative (“knocked out” of the organism). This is done for research purposes to learn about the function of the gene. Researchers can draw inferences about the gene’s function from the differences between the knockout organism and normal organisms. Transposagen has developed a novel technology, based on mobile DNA, to generate animals with an accelerated rate of random gene mutations in germ cells. The funds, awarded in the form of a forgivable loan for up to $325,000, will be used to purchase laboratory equipment and upfit leased space to accommodate the equipment, as well as to obtain protection for the company’s intellectual property.
A client of the Lexington Innovation and Commercialization Center, Transposagen anticipates that in addition to the company’s existing workforce of three, it will create a minimum of 13 full-time, high-tech and technical support jobs for Kentucky residents by December 31, 2012, paying an average salary of approximately $57,500, exclusive of benefits.
· Kentucky Science and Technology Corporation – Lexington; Established in 1987, the Kentucky Science and Technology Corporation (KSTC) is an independent, private, nonprofit enterprise. Its mission is to enhance the capacity of people, companies and organizations in Kentucky to develop and apply science and technology and compete in the global marketplace. Under contract to the Cabinet’s Department of Commercialization and Innovation, KSTC administers a range of state-supported and funded programs to expand and extend the state’s scientific, technological, and entrepreneurial capacity. KSTC has administered the Kentucky Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Matching Funds Program since its inception.
The funding approved by KEDFA, in the amount of up to $3,300,000, will be used to continue making matching grants to Kentucky high-tech small businesses that receive federal SBIR-STTR awards. Since October 2006, the program has awarded 57 matching grants to 37 different companies for a combined total of more than $13.3 million. Of these companies, four were out-of-state firms that relocated their high-tech operations and jobs to Kentucky to participate in the matching funds program. More information about the program is available at www.ThinkKentucky.com/DCI/DCIFunding.aspx.
The awards were funded through the Cabinet’s High-Tech Investment Pool, which is used to build and promote technology-based and research-intensive companies and projects with the goal of creating clusters of innovation-driven industries in Kentucky. The Kentucky statewide network of six Innovation and Commercialization Centers (ICCs) and six Innovation Centers (ICs) provides locally accessible, business-building consulting and related services to Kentucky’s entrepreneurs and scientists.
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The Kentucky Cabinet for Economic Development is the primary state agency in Kentucky responsible for creating new jobs and new investment in the state. New business investment in Kentucky in 2007 totaled over $2.3 billion with the creation of more than 13,800 new jobs. Information on available development sites, workforce training, incentive programs, community profiles, small business development and other resources is available at www.ThinkKentucky.com.