Success of South Carolina’s SSBCI Loan Participation Program
Since the announcement of the SSBCI program in 2012, the SSBCI program has evolved into one of the most successful loan programs in the U.S. In 2014, the U.S. Treasury named South Carolina a leading state in deploying these funds to local lenders and small businesses. In addition, the Council of Development Finance Agencies (CDFA) announced BDC as the winner of the 2015 CDFA Excellence in Development Finance Program Award for this loan program.
BDC Announces Significant Program Milestones*
- purchased over $38 million in participations
- gross loans in excess of $202 million by 22 participating banks
- loans averaged in excess of $900,000
- 4,514 total employees
- 2,599 jobs retained
- 849 jobs created
“Access to capital through this program has empowered small businesses across our state to expand and to put more people to work, said Edwin O. Lesley, Chairman of the Board of Directors of BDC, which serves as administrator for this program. “These critical funds have provided a powerful stimulus for increasing jobs in our state, as this program has greatly benefitted enterprising businesses across South Carolina. BDC has recently obtained substantial additional funding for the program and welcomes additional bank participation.”
How SSBCI Loan Participation Program Works
SSBCI is a highly-successful loan participation program in which BDC is able to purchase an interest in a bank’s eligible commercial loan and subordinate its interests in the event of liquidation to the bank’s interests. This has the effect of allowing the borrower to have a lower down payment and the bank to have a lower loan-to-value, leading to more loans being approved by the bank.
* Through April 2018
