South Carolina Direct Financial Incentives 2011
South Carolina's economic development, finance and tax organizations provide a range of incentive programs to initiate new business and commercial investment. Specific programs include BCI Lending Services and InvestSC.
BCI Lending Services (BCI) is a not-for-profit, statewide development finance institution that provides innovative financial products and capacity-building services to promote growth and competitiveness of new and existing small and medium-sized businesses in South Carolina. BCI complements private sector activities through a variety of lending programs to fill gaps in funding often faced by these businesses, especially in rural and distressed areas of the state.
Business Development Corporation:
The Business Development Corporation (BDC) of South Carolina is a privately owned, non-banking financial institution organized for the purpose of promoting economic development within the state. It provides term loans to both new and expanding businesses that are unable to obtain financing through normal banking sources. Loans can be obtained for most business purposes and by various types of businesses, except for investment, speculative, and eleemosynary ventures.
South Carolina Capital Access Program:
The purpose of the South Carolina Capital Access Program (SC CAP) is to promote economic development and job creation through small businesses in South Carolina by providing financial institutions with a flexible and non-bureaucratic resource. SC CAP is based on a reserve fund concept and is fundamentally different from traditional insurance or guarantee programs, which guarantee individual loans. Rather, SC CAP works on a portfolio concept. In other words, if a financial institution participates in SC CAP, a special reserve fund, which is owned by the state, but managed by Business Development Corporation of SC, is set up to cover future losses from a portfolio of loans that the institution makes under the program. The SC CAP reserve fund is not specific to individual loans, but is used to offset losses on any loan in the participating financial institutions SC CAP portfolio.
Jobs-Economic Development Authority:
The South Carolina Jobs-Economic Development Authority (JEDA) was created in 1983 by an act of the General Assembly to retain and expand job opportunities and enlarge the tax base of the State and its local governments by meeting the financial and capital needs of the small and middle market business community. Through the use of taxable and tax-exempt bonds, JEDA assists in the financing of eligible projects by serving as a statewide conduit issuer of special obligation revenue bonds. Entities borrow money through, not from, JEDA, which is repayable solely from revenue producing projects or special sources. Since its inception, JEDA has issued 421 bonds for a total of over $7 billion, which have been responsible for the creation and retention of over 180,000 jobs in South Carolina.
Enterprises which qualify for Tax-Exempt Industrial Revenue Bond issues are as follows:
• Manufacturing Facilities: Maximum Capital Expenditure $20 million - Tax Exempt Bond Limit $10 million
• Non-Profit Organizations:
1. Healthcare Facilities: Acute care hospitals, nursing homes, assisted living facilities, fitness and wellness programs (i.e. YMCA), alcohol and drug abuse projects, residential youth programs
2. Educational Facilities: K-12 and private colleges owned by 501(c)(3) educational organizations
3. Other Qualifying Non-Profit Entities
• Solid Waste Disposal Facilities: Cement manufacturers, automobile paint shops, traditional landfills, electric generating waste removal
InvestSC, Inc. can best be described as a fund of funds and is committed to promoting economic development within the state. The program provides an invaluable resource for companies already located in South Carolina or for companies looking to locate here. Formed by JEDA, InvestSC, Inc.'s purpose is to assist the Venture Capital Authority (VCA) of South Carolina in meeting their goals and objectives. The VCA has partnered with four venture capital funds that are willing to invest in companies looking to locate or expand within the state.
South Carolina Contact:
South Carolina Jobs-Economic Development Authority
1201 Main Street, Suite 1600
Columbia, SC 29201
Phone: (803) 737-0268
Fax: (803) 737-0628
Incentive and tax information is provided to Area Development by each state's economic development or commerce agency for information purposes only and is subject to revision at any time by the state government. Please contact the state agency directly for full requirements and offerings.