SC SSBCI Loan Participation Program
The U.S. Department of Treasury has approved for the South Carolina Jobs-Economic Development Authority (SC JEDA) to contract with Business Development Corporation (BDC) to administer the South Carolina State Small Business Credit Initiative Loan Participation Program. The SC SSBCI Loan Participation Program, which supports state-level, small business lending programs, is an important component of the Small Business Jobs Act signed into law September 27, 2010.
The Loan Participation Program allows BDC to use allocated funds to purchase a participation interest in qualifying loans initiated by a financial institution, including term loans and lines of credit. Typically, BDC will purchase a 25% interest in the loan. All interest rates and fees are set by the financial institution, subject to BDC concurrence. The borrower submits one payment to the financial institution, and, in turn, the financial institution remits a pro-rata share to BDC. Throughout the term of the loan, the financial institution lender maintains responsibility for all loan servicing activities. In the event of loan default, BDC’s participation can be either equal (pari-passu), or fully subordinate to the financial institution, depending upon terms agreed upon at loan inception.
Which financial institutions can participate in the SC SSBCI Loan Participation Program? Any insured depository institution, insured credit union, or community development financial institution chartered by the State or any national bank provided, however, that the financial institution has offices located in South Carolina. To enroll in the program simply request a copy of the SC SBBCI Loan Participation Program Master Agreement, or download the agreement from the tab below. Then, please complete and return to BDC for approval.
What type of loan may qualify for the SC SSBCI Loan Participation Program? Any business loan, short- or long-term, to a corporation, partnership, joint venture, sole proprietorship, cooperative or other entity that carries on a business activity for profit or non-profit in the state of South Carolina. For purposes of this program, a small business generally means:
- Borrower does not employ more than 500 employees;
- The borrowing amount cannot exceed $5,000,000
SC SSBCI Loan Participation Brochure
Quick Reference Guide- SSBCI Loan Participations
SC SSBCI Loan Participation Program Master Agreement (full agreement, contains all exhibits listed below)
- Exhibit A- BDC Commitment Letter
- Exhibit B- Participation Certificate
- Exhibit C- Borrower’s Certification
- Exhibit D- Application for Participation
SSBCI Webinar PowerPoint (from 8/15/12)
Participating Financial Institutions
Ameris Bank
First Citizens Bank
First Community Bank
First Federal
First National Bank of SC
First Reliance Bank
NBSC, A Division of Synovus Bank
The Palmetto Bank
Park Sterling Bank
South Carolina Bank & Trust (SCBT)