State Small Business Credit Initiative
(SSBCI) Loan Participation Program

Benefitting Both Small Businesses and Lenders

In addition to helping promote economic development and create jobs in South Carolina, the SSBCI Loan Participation Program benefits both small businesses and lenders.

Small Business Borrower

• 
  Easy application process
• 
  Fast disbursement of funds
• 
  Quick response to loan request
• 
  Flexible and local loan decisions

Lender

• 
  Relaxed underwriting standards
• 
  Special program for underserved businesses
• 
  Retain client and ancillary banking services
• 
  CRA credit opportunity for each loan

Proceeds must be used for a business purpose which includes (but is not limited to) the following:

Businesses that Qualify

Businesses that may qualify for this loan program are entities that carry on a business activity for profit or not-for-profit in South Carolina, including:

• 
  For-profit corporation
• 
  Limited liability company
• 
  Partnership
• 
  Joint venture
• 
  Sole proprietorship

Authorized Areas of Operations

BDC has authority to make SSBCI loans in South Carolina

• Qualifying Borrowers
  • Program is designed to target for-profit businesses with 500 or fewer employees and whose loan request is $5 million or less on average. Borrowers that have more than 750 employees, and loans that exceed a principal amount of $20,000,000, are not eligible.
• Borrower Equity Requirement
  • Minimum of 5%
• Minimum BDC Participation Amount
  • $50,000
• Maximum BDC Participation Amount
  • $1,000,000
• Maximum Participation Percentage
  • The majority of loans will fall in the 10%-25% range, although an amount of up to 49% is allowable.
• Eligible Loan Purposes
  • Term loans, in which proceeds must be used for an eligible business purpose, including but not limited to the purchase of owner-occupied (non-passive) real estate, and equipment. Short-term loans for construction, interim or bridge financing.
• Ineligible Loan Purposes
  • Passive real estate investment, speculative activities, repayment of delinquent taxes, purchase ownership interest in a business, gambling, pyramid sales, payment of dividend or other distribution, and activities prohibited by Federal or State law.
• Maximum Loan Term
  • Up to 25-year amortizations.
• Interest Rate/Fees
  • Rates are determined by the bank lender, subject to BDC concurrence. Any fees charged by the bank lender (application, origination, documentation, construction, other) will be shared with BDC on a pro rata basis. No other program fees will be charged to the borrower.
• Personal Guaranty
  • All owners of 20% or more of the business must provide a personal guaranty.