Capital Access Program Gives Hope to the Small Business Borrowers

In a delightful turn of legislative events this year, the Capital Access Program received a $3 million investment and is ready to be implemented in the state of South Carolina.  The program received its enabling legislation in June of 2005 and in 2006 it received the funding it need from the state budget to get the program started.  The Capital Access Program, managed by the Business Development Corporation (BDC) of South Carolina, provides access to capital for small new and existing businesses.  The state actually shares with the bank and customer the funding a small loan loss reserve to help qualify these loans to small business customers. 

“BDC is proud to be managing the SC Capital Access Program which has the potential, with the participation of the bankers in SC, to provide as much as $66 million in needed economic development financing to small businesses in SC,” says Edwin O. Lesley, president and CEO of the Business Development Corporation. “We are now ready to sign up Participating Lenders and would appreciate a call from those who would like to be a part of this exciting new program.” 

The Capital Access Program has been successful in at least 20 states and a few municipalities, including Massachusetts since 1993.  Since then, Massachusetts’ General Court has funded their Capital Access Program to the tune of $10.5 million which has been leveraged to generate $207 million in new loans to 3,411 small business borrowers. 

This program is available to all banks in South Carolina.  If you have any questions please contact Edwin Leslie at the Business Development Corporation or Walker Smith at the SCBA.
7/31/2006

South Carolina – Small Business Development Center

 Provides a 2004 Operating Summary

14 SBDC offices provide a state wide presence, where:

4,383 South Carolina citizens sought help, advice or training from the SC-SBDC in 2004. 

Almost 700 hours of Educational Seminars were presented to more than 2300 people, teaching entrepreneurs how to start a new business, or teaching existing business owners how to better operate and manage their businesses.

The SC-SBDC spent 11,358 hours in one-on-one free and confidential counseling to 2,078 of the state’s small businesses -- saving 183 existing jobs, and helping to create 709 new jobs (for a total of 892 jobs affected positively).

Our clients received 343 Government contracts for a total of more than $12.5 million.

Can we help your business??  

www.uscbiz.net or 803-775-5118

6/9/2005


An Introduction to The Palmetto Institute

James P. Fields, Jr.

Executive Director
 

(This article appeared in the 2002-4 issue of the Palmetto Banker)
The Palmetto Institute is an independent, nonprofit, nonpartisan research foundation.  The Institute found its beginnings in the collaboration of 11 South Carolina natives, from Corporate CEO’s to College Deans, from successful entrepreneurs to a former Chief Justice of the South Carolina Supreme Court, all brought together by the dedicated organizational efforts of Darla Moore, chair of the Institute Board.  This diverse group shared the common concern that South Carolina was not keeping pace economically with its neighboring states and the nation as a whole and consequently formed its corporate mission around a singular overriding goal of increasing the wealth of every citizen of South Carolina.    

Using per capita income as its standard of measurement, the Board saw a state economy in which the per capital personal income of South Carolinians was only 81% of the national average.  More importantly, over the last ten years, the gap between the state’s per capita personal income and its neighboring states was widening in favor of our contiguous sister states.

To begin addressing the problems, the Institute commissioned an internationally credentialed economic analysis firm, DRI-WEFA, to prepare a comprehensive baseline assessment of South Carolina’s economy.  The report, The South Carolina Challenge: Regional Economic Analysis, confirmed what many members of the Board believed and other competent research had indicated, to wit:

-         As it now stands, South Carolina cannot compete vigorously in the new, knowledge-based economy with this mix of industries and this quality of economic foundations. (Section I.2., page 2, paragraph 2)

-           The data point to a state that continues to move forward but has been unable to close the gap with many of its neighbors or other leading growth states.  South Carolina has an urgent need to chart a more defined course. (Section III.1., page 12, paragraph 2)

These conclusions by DRI-WEFA are supported by findings that the state’s real gross product per capita is 20% below the national average, its manufacturing wages are 24% below the national average and its personal income is 18% below the national average.  Of greater and more pressing concern is the fact that South Carolina is also trailing its neighboring states in these categories and the gap is widening.  The report strongly recommends that:

South Carolina needs to take a deliberate approach to clustering.  Clustering is the act of pro-actively accelerating the process of creating institutions that provide needed economic infrastructure and strengthening linkages between networks of firms and these institutions. The first step is to establish collaborative cluster group that includes both significant public and private collaboration and academic representation.  These working groups can identify common problems and barriers to industry growth, cooperate on initiatives of mutual interest, identify expansion, attraction and retention goals, and establish linkages within and among clusters. (Section I.2., page 2)

In order to develop these industry clusters in a knowledge based economy, however, there must be a strong and vital economic foundation.  The report reviews the six fundamental components of such a foundation.  In the case of South Carolina, we compare quite favorably on Quality of Life and Business Climate; the state lags behind neighboring states in the remaining four categories of Labor Force Skills [education], Access to Capital, Technology and Infrastructure.  The report keyed on the concern over Labor Force Skills.  The rate of growth and ultimate actual growth of a knowledge based economy is so closely tied to the availability of skilled, professional labor that this component rises to the level of a linchpin of economic foundation.

Notwithstanding these shortcomings, DRI-WEFA believes that with the proper focus on development of industry clusters and concerted efforts to improve the state’s economic foundation, South Carolina has solid opportunity to erase the gap between itself and its neighbors and the nation as a whole.

The Palmetto Institute established its mission to include, among other things:

-      Conducting research on topics that will affect future development and promote positive economic change within South Carolina;

-      Facilitating productive collaboration among researchers from a variety of fields and disciplines;

-       Disseminating research findings and conclusions both to scholarly and lay audiences;

-       Offering practical, unbiased information and ideas on key public policy issues to citizens, policy makers and the media; and

-      Assisting opinion leaders and policy makers in reaching informed decisions in matters that affect the future of South Carolina.

The DRI-WEFA Report represents a first step in a broad, comprehensive effort towards fulfillment of the Institute’s mission; the Palmetto Institute invites all interested citizens and the membership of the S.C. Bankers Association to join in the public discourse we hope will follow.  For further information about the Institute, its Board or to obtain a copy of the report, please visit our website at www.palmettoinstitute.org.

2/21/03
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South Carolina Banks Create Jobs and Spur Economic Development

In recent information released by the Certified Development Corporation, South Carolina banks are participating in the SBA 504 program, which the CDC administers throughout South Carolina, to create much needed jobs and economic development in many areas.

In 2001, bankers worked with the CDC to approve loans for businesses to create and retain 775 jobs throughout the state and create more than $88,000,000 in total project dollars.  504 is the SBA's economic development instrument that supports American small business growth and helps communities through business expansion and job creation.

The SBA 504 loan program provides long term, fixed rate, subordinate mortgage financing and acquisition and/or renovation of capital assets including land, buildings and equipment.  The SBA 504 program is an excellent program for providing long term, subordinate mortgage financing for your business customers.  The loans are at a fixed interest rate and at terms of up to 20 years with no call provisions.  Virtually all for-profit businesses are eligible for financing under this program. 

The annual meeting of the members and board of the CDC were held recently, and several lenders were recognized for their activities in referring and parterning with CDC on 504 projects.  BB&T, SouthTrust and First Citizens were the recipients of the most active partner awards, with BB&T being the leader.  Congratulations to these South Carolina Bankers Association members! 

The following South Carolina Bankers Association members participated in the SBA 504 project with the CDC in 2001:

Bank of America

BB&T

Carolina First

Farmers and Merchants Bank of SC

First Citizens

First Federal

First South

Florence National

Liberty Savings

NBSC

Orangeburg National

Security Federal

SouthTrust

Wachovia

Thank you for making a difference in your community!

For more information, click here for the Certified Development Corporation website or call (803) 798-4064.

6/19/2002