The Federal government has granted $18 million to South Carolina to create capital access program for small businesses that are credit worthy. The ‘National State Small Business Credit Initiative funding’ can generate 10 times as much in private lending.
South Carolina had to show a reasonable expectation that from every $1 in federal funding there can be reasonable return of $10 in new private lending. There is hope that capital access program in South Carolina would generate $180 million in small business lending. Importantly, this access to funds shall empower small businesses to open, expand, and do everything for their own success.
Businesses that are eligible for the program are expected to have 500 employees and borrow up-to $5 million. Even hospitals falling in the category ‘not for profit organizations’ are found eligible to borrow under this new program. Small businesses are being focused by state leaders to control South Carolina’s 10.2% jobless rate. 65 percent of jobs in South Carolina reside in small businesses.
‘National State Small Business Credit Initiative funding’ had been extended to 13 more states before reaching out to South Carolina. The program got created by Small Business Jobs Act passed by Congress and signed by President Obama on Sept 27th.
South Carolina Bankers Association lobbied for the legislature and introduced it to its members consequently. The economic development authority will participate with Business Development Corp. of South Carolina to administer and put the program into effect.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to