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Helping Small Businesses Grow, Expand and Create Jobs in SC

The SSBCI Loan Participation Program enables small businesses in South Carolina to obtain short to long-term financing to help businesses grow and expand, ultimately creating and retaining jobs in South Carolina. By partnering with financial institutions, this program provides small business loans at competitive terms while reducing the risk for the lender and allowing borrowers to receive financing terms that otherwise may not have been available.

Short to Long-Term Financing for Small Business Growth in South Carolina.

SSBCI Loan Participation Program Overview

SSBCI Loan Participation Brochure Compare Programs (PDF)

Qualifying Borrowers

Program is designed to target businesses with 500 or fewer employees and whose loan request is $10 million or less. Qualifying not-for-profit entities are also eligible.

Maximum BDC Participation Amount  

$1,000,000 (exceptions may apply).

Maximum Participation Percentage

Generally, 25%.

Eligible Loan Purposes

Proceeds must be used for a business purpose.

Ineligible Loan Purposes

Passive real estate investment, speculative activities, gambling, pyramid sales, activities prohibited by Federal or State law.

Maximum Loan Term

Up to 20 year amortizations.

Interest Rate/Fees

Determined by lender, subject to BDC concurrence.

Form Of Participation

At the time of loan inception, lender and BDC to mutually agree whether collateral position will be equal (pari-passu) or BDC subordinated to lender in the event of default.

Loan Servicing

Lender is responsible for all loan servicing and liquidation (if required).

Documentation Required

Master Loan Participation Agreement, Application for Participation, Bank’s Underwriting Credit Memo and Borrower’s Financial Statements, BDC Commitment Letter, Participation Certificate, Borrower Certification, Bank Closing Documents.

Lender/Borrower Certification

Certifications required as listedĀ in documents named above.

 

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 LENDER

Provides small business loans at attractive terms

Provides lender reduced risk of loss

Provides a flexible and non-bureaucratic resource for funding

Allows the lender the ability to approve a loan that would otherwise be declined due to high Loan-to-Value/Loan-to-Cost

Provides fast disbursement of funds to the borrower

Helps the lender retain client and ancillary banking services

Allows borrowers to receive a quick response to a loan request

Provides the lender CRA credit for each transaction

Use of Proceeds

Proceeds must be used for a business purpose in the state of South Carolina, which includes (but is not limited to) the following:

  • Equipment
  • Term loan financing
  • Purchase or construction of renovations of owner-occupied real estate

For Profit and Non-Profit 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
  • Consumer or marketing cooperatives

Participating Financial Institutions

Ameris Bank
Bank of Travelers Rest
Coastal Carolina National Bank
Coastal States Bank
Countybank
CresCom Bank
Dedicated Community Bank
Entegra Bank, A Division of Macon Bank
First Citizens Bank
First Community Bank
First National Bank of SC
First Palmetto Bank
First Reliance Bank
Home Trust Bank
IBERIA Bank
Independence National Bank
Security Federal Bank
South State Bank
Southern First Bank
Synovus Bank
The Citizens Bank
United Community Bank

BDC Resources

Nat Green

Nat Green

Senior Vice President & Loan Officer

     803.744.0309
    803.744.0609
    NGreen@BDCofSC.org