South Carolina Direct Financial Incentives 2010
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, the Business Development Corporation (BDC) of South Carolina, S.C. Capital Access Program, S.C. Jobs-Economic Development Authority, and InvestSC.
BCI Lending Services 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.
S.C. Capital Access Program:
The purpose of the S.C. 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 S.C., 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.
S.C. Jobs-Economic Development Authority:
The South Carolina Jobs-Economic Development Authority (JEDA) was created by an act of the General Assembly by Section 41-43-10 and is a quasi-public instrument of the State. JEDA seeks to provide innovative financial direction and offer products and tools to promote growth and competitiveness among new and existing businesses, create jobs and improve living conditions in South Carolina. Since its inception in 1983, JEDA has transitioned into an agency that issues tax-exempt and taxable Industrial Revenue Bonds. JEDA has become the issuer of choice of hospitals and other health care facilities, educational facilities, cultural organizations, tax-exempt entities (501(c)(3)'s), existing industries, solid waste facilities and other qualifying entities.
JEDA also assists with the New Market Tax Credit (NMTC) Program, a federal tax incentive program that was authorized by Congress in 2000, to help spur the investment of $15 billion of capital into businesses that are located in low-income communities.
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.