STATEWIDE, SC – The U.S. Department of the Treasury announced at their State Small Business Credit Initiative (SSBCI) Conference in Dallas, TX, that South Carolina is first in the nation to utilize all of their Loan Participation Program allocation of $16.8 million from SSBCI. In addition, US Treasury announced The Palmetto Bank ranked 12th in the nation for utilization of SSBCI program dollars as of March 31, 2013. The Palmetto Bank is the leading participant in SC and has enrolled $12,100,117 in SC’s two SSBCI programs.
“The U.S. Treasury recognizes South Carolina and the Business Development Corporation for being national leaders in utilizing the U.S. Treasury’s State Small Business Credit Initiative (SSBCI). SSBCI funding is designed to help small businesses get the capital they need to invest, grow and create jobs. The BDC of South Carolina’s performance demonstrates how both lenders and businesses can benefit from this program that puts decision-making in local hands,” said Cliff Kellogg, SSBCI Director, U.S. Treasury.
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. South Carolina’s use of the SSBCI funds has helped create new jobs and spur millions of dollars in additional lending to small businesses, specifically to date:
$64,779,206 – Loans Committed
1,479.5 – Jobs Created and Retained
$12,166 – Federal funds used per New and Retained Job
15% – Loans for Women-Owned Businesses
11% – Loans for Veterans
8% – Loans for Minorities
21% – Loans in Low to Moderate Income Areas of SC
“By leveraging the SSBCI allocated funds, we expect it will generate more than $180 million of additional private lending over the life of this program,” said Edwin O. Lesley, President/CEO of BDC, which serves as administrator for this program. “Considering that our SSBCI Loan Participation Program is a revolving loan program, funds will continue to be available in the future. In addition, our SSBCI CAP program currently has available funds.”
“Currently, BDC is working to attract additional funds for this program and BDC is offering banks the opportunity to continuously recycle funds through this program in order to increase the leverage and provide benefit to more South Carolina businesses. Our South Carolina program, with the support and participation from the banking community has received national recognition. Together, we plan to continue to help empower small businesses across our state to open, expand and to put more people to work,” Lesley said.
Daniel Felder, Vice President and Credit Administrator at The Palmetto Bank said, “Through the utilization of SSBCI funding, The Palmetto Bank has extended more than $12 million in credit to established, credit-worthy borrowers who would otherwise have had 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. The Palmetto Bank is pleased with BDC and its partnership with SC JEDA, and we are excited to be participating in the program to provide economic development lending to local businesses throughout the Upstate.”
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 with Treasury for the SC 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).”
About the State Small Business Credit Initiative (SSBCI) Loan Program
Under the Small Business Jobs Act, South Carolina has accessed $18.0 million in SSBCI funds ($16.8 million for the SSBCI Loan Participation Program and $1.2 million for the SSBCI CAP Program), 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.
For more information about the SSBCI CAP and Loan Participation programs, contact BDC at www.BDCofSC.org or call (803) 798-4064.