The U.S. Department of the Treasury just announced that South Carolina is the first state to have utilized their entire allocated portion of a small business loan participation program. The Treasury has also announced that Greenville-based Palmetto Bank played a lead role in disbursing small business loans in South Carolina. The bank has enrolled $12.1 million from two programs under Treasury’s small business initiative.
The State Small Business Credit Initiative is a federal loan program is designed to help small businesses find the capital that is needed to invest, grow and create new jobs. This program is a part of the Small Business Jobs Act that President Obama signed into law in 2010.
State use of the funds allocated have created new jobs and helped to spur millions of dollars in loans to small businesses. The impact of the program is far-reaching. $64.78 million has been committed to small business loans, 1,479.5 new jobs were created with $12,166 federal funds utilized per new and retained jobs. Of the money used for loans, 11% of the money went to veteran business owners and 15% was allocated for women-owned businesses.
South Carolina is the first state to have utilized all allocations made for the small business loan participation program. The Greenville-based Palmetto Bank is ranked 12th in nation for utilization of program dollars. Out of the awards made, 8% went to minorities and 21% to moderate income areas of South Carolina.
It is because of the participation and support of the banking community that South Carolina loan programs have worked so well. Together, plans have worked to help small businesses expand and to increase their workforce.
This article was submitted by Rohit Arora, co-founder of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to