Most of these loan programs are available from your bank, along with conventional financing. The terms, rates and security regulations favor a small business, and each fills a unique niche in the financing needs of an expanding industry.

Revolving Loan Fund: The Berkeley-Charleston-Dorchester Council of Governments' Revolving Loan Fund (RLF) is a locally controlled source of capital that assists start-up and growing businesses. The primary purpose of the RLF is to improve the region's economy through the creation and retention of permanent full-time jobs. The RLF is most often used as "gap financing" to provide leverage for private sector loans and investments.

Eligible uses for RLF loans include the purchase of machinery, equipment, real estate and inventory, as well as the improvement of real estate and building facilities. Loans can also be used to provide permanent working capital on a limited basis. In general, loan terms will average three to five years on working capital, five to seven years on machinery and equipment, and up to 15 years on real estate.

RLF interest rates are fixed between Prime (+) 2 points and Prime (-) 4 points for the life of the loan based on the strength of the proposed project. The RLF can be used to finance up to one-third of the total project cost.  In addition, a project must create or retain at least one job per $10,000 in funds borrowed from the Council of Governments. RLF loans may be subordinated to a participating lender.  Financing is available in amounts up to $200,000.

Contact:           Jacquelyn Dickerson-Ideozu

           Berkeley Charleston Dorchester Council of Governments

           1362 McMillan Ave., Suite 100,

           North Charleston, SC 29405

           (843) 529-0400

           jacquelynd@bcdcog.com

SBA 504 Loan Program: This is a loan program for fixed assets with a cap of $1 million. The interest rate will be negotiated with the lender, normally your bank. The loan must be secured and has a 10 to 20-year term. It requires 10% borrower equity, with the primary lender taking 50% of the loan and the SBA approving 40% funding using a secondary collateral position. The borrower must create one new job for every $50,000 loaned. This program has been successfully used for renovation or expansion of existing facilities using the net equity in a building to meet all or part of the borrower’s down payment.

Contact:           Paul Thomas, Senior Area Manager

           U.S. Small Business Administration

           5900 Core Drive, Suite 403

           North Charleston, SC 29406

           (843) 225-0006

           paul.thomas@sba.gov

SBA 7(a) Program: This loan can be used for fixed assets or working capital. The applicant must have been turned down for conventional financing. It is primarily a guaranty program for up to 75% of the loan with a 25-year term. No job creation requirement exists. The dollar range is from $150,000 up to $2 million (with $1 million maximum SBA exposure).

Contact:           Edwin Lesley

                           Business Development Corporation

                           PO Box 21823

                           Columbia, SC  29221

                           (803) 744-0301 (office) 

                           (803) 744-0601 (fax)

                           edwinlesley@businessdevelopment.org

SBA LowDoc Program: This loan is for an existing business that employs no more than 100 people and has gross average annual sales of less than $5 million. It is a guaranty program for up to 85% of the loan with a 25-year term. The borrower must pledge available business and personal assets. The dollar range is from $50,000 to $150,000. (www.businesscarolina.net)

Contact:           Edwin Lesley

           Business Development Corporation

           PO Box 21823

           Columbia, SC  29221

           (803) 744-0301 (office)

           (803) 744-0601 (fax)      

                           edwinlesley@businessdevelopment.org

Industrial Revenue Bonds: By offering a competitive interest rate and tax exempt income for the holder of the bonds, Industrial Revenue Bonds are an attractive means for manufacturing companies to expand their business. IRB’s are used to finance fixed assets and include a $10 million cap within each jurisdiction over a six-year period. The cap affects both the amount of the bonds and the capital expenditures going both backwards and forwards three years. The maximum any company may have outstanding nationwide is $40 million at any given period. Industrial Revenue Bonds are most cost effective for companies investing $2 million to $10 million. Bonds are approved and processed with involvement from the county and state. Bond counsel is required.

Contact:           Harry A. Huntley, CPA, Executive Vice-President

           S.C. Jobs-Economic Development Authority  

           1201 Main Street, Suite 1600

           Columbia, SC 29201

           (803)737-0627 (office)

           (803)238-3050 (mobile)

           (803)737-0628 (fax)

           hhuntley@InvestSC.org

           hhuntley@scjeda.net

The Life Sciences Act: The Life Sciences Act provides incentives for life sciences companies that invest more than $100 million in a project and create a minimum of 200 new full-time jobs that pay at least one-and-a-half times the annual per-capita income for the state or county in which the facility is located. The act also allows the state to issue up to $250 million in general obligation bonds to pay for infrastructure improvements necessary to induce the location of large life science facilities within the state.

Contact:           William C. Cronin, Jr., Director, Global Business Development

           South Carolina Department of Commerce

           (803) 737-0421 (Phone)

           (803) 806-3502 (Fax)

           bcronin@sccommerce.com

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