Building South Carolina One Business At A Time

Welcome

Business Development Corporation of SC (BDC) was established in 1958 by the South Carolina State Legislature to promote business and industry within the state. BDC is a non-bank commercial lending company specializing in the SBA 7(a) loan guaranty program.

Certified Development Corporation of SC (CDC), a sister corporation of BDC, has participated in providing financial assistance to businesses since 1994. CDC specializes in SBA 504 debenture financing — all of which are limited to the state of South Carolina.

Both BDC and CDC serve a unique role in South Carolina's economic picture, primarily by providing promising businesses a source for commercial loans not usually undertaken by traditional lending institutions.

BDC and CDC continue to have successful years.  For the year ended 2008, BDC had 21 approvals representing $7,478,500.00 in total loan amounts. An estimated 200 jobs were created or retained with these approvals. For the year ended 2008, CDC had approval for 26 debentures totaling $10,472,200, representing $38,328,771 in total project costs. An estimated 191 jobs were created or retained with these approvals.

From 1958 through 2008, the BDC and CDC have approved some 1,577 loans for $589.5 million making the combined entities the leading SBA lender in South Carolina.

SBA Fees Eliminated!

We received the long-awaited SBA Policy Notice regarding the Implementation of Section 502 of the Recovery Act.  We’re especially excited about the bullet points below and wanted to bring special attention to these items.  We urge you to consider using these programs.  

7(a) Loan Guaranty Percentage. As of today, a Lender may request up to a 90 percent guaranty for a 7(a) loan.  The Recovery Act did not change the maximum SBA guaranteed amount which remains at $1,500,000 or the maximum loan amount which remains at $2,000,000. 

7(a) Loan Guaranty Fee Eliminations. For 7(a) loans approved by SBA on or after February 17, 2009, SBA will eliminate the upfront guaranty fees for all eligible loans, including those made with higher SBA guarantees (up to 90%). 

504 Development Company Program Fee Eliminations. For eligible debentures approved by SBA on or after February 17, 2009, SBA will eliminate two program fees: 1) Third-Party Participation Fees; and 2) CDC Processing Fees.  Therefore, elimination of the Third-Party Fee means Banks temporarily no longer pay the .5% Participation Fee, and the borrower no longer pays the 1.5% Processing Fee which reduces the loan amount added to the net debenture and ultimately the loan payment.

Prohibition on Use of Funds. The Recovery Act for 7(a) and 504 loans states that none of the funds appropriated or otherwise made available in this Act may be used by any State or local government, gambling establishment, aquarium, zoo, golf course, or swimming pool. 

Submission Process. There will be no change to the submission process for 7(a) and 504 loans.

Expiration Date. SBA estimates that the increased guaranty percentage and fee elimination will be available through approximately December 31, 2009. 

BDC & CDC are ready to help.  Please give us a call. 803-798-4064.

Newsletter

Business Development Corporation recently received funding from the State in order to operate the newly enacted South Carolina Capital Access Program (SC CAP). Learn more about SC CAP and view our latest newsletter here.

January 2007 Newsletter

Coverage

View a map of our service area, by county, in South Carolina and Georgia.