STATEWIDE, SC -— The U.S. Department of the Treasury and Business Development Corporation (BDC) announces that South Carolina has received its third round of funding of $6 million from the State Small Business Credit Initiative (SSBCI).
South Carolina’s use of the SSBCI funds has helped create new jobs and spur millions of dollars in additional lending to small businesses. The SSBCI program, which supports state-level, small- business lending programs, is an important component of the Small Business Jobs Act that President Obama signed into law in 2010.
“Access to capital through this program has empowered small businesses across our state to open, expand and to put more people to work,” said Edwin O. Lesley, President/CEO of BDC, which serves as administrator for this program. “For this third tranche of $6 million, we expect it will generate more than $60 million of additional private lending over the life of this program.”
“Through the utilization of SSBCI funding, The Palmetto Bank has extended credit to established, credit-worthy borrowers who would otherwise have difficulty obtaining necessary financing. These new banking relationships have provided quality asset growth while meeting the program initiatives of providing economic development and job creation throughout the Upstate of South Carolina, said Daniel Felder, Vice President, Credit Administrator at The Palmetto Bank. “The Palmetto Bank is pleased with BDC and its partnership with SC JEDA, and we look forward to providing more economic development lending to local businesses throughout the Upstate.”
BDC has participated with 11 different banks throughout South Carolina with transactions of over $53.6 million in the program to date. “These critical funds have provided a powerful reason for banks to lend to stimulate job creation in our state, as this program has greatly benefitted enterprising businesses across South Carolina during the first and second round of funding,” said Lesley.
The success of the program in South Carolina is due in large part to SSBCI’s flexibility that allows states to develop individual programs that will work in their respective states. “This is not a ‘one size fits all’ program and Washington deserves much credit for supporting this approach,” said Lesley. “In addition, we are appreciative to SC Jobs-Economic Development Authority (SC JEDA), the SC conduit for our SSBCI program, for helping make this program available to South Carolina and ultimately helping in our statewide economic recovery. In addition, this program would not have been possible without the support of the South Carolina Bankers Association (SCBA).”
Under the Small Business Jobs Act, South Carolina has accessed $18.0 million in SSBCI funds, which have been made available to the state in three, equal rounds of funding. Under the SSBCI, all states were offered the opportunity to apply for federal funds for state-run programs that partner with private lenders to increase the amount of credit available to small businesses. States needed to demonstrate a reasonable expectation that a minimum of $10 in new private lending would result from every $1 in federal funding. Accordingly, the $1.5 billion federal funding commitment is expected to result in at least $15 billion in additional private lending nationwide.