A new business loan initiative for South Carolina

8/1/2011

Small businesses in South Carolina have a new option for government-backed commercial funding. Under the federal State Small Business Credit Initiative, and through the state's Jobs Economic Development Authority (JEDA), South Carolina received $18 million in assistance.

"Access to capital is a struggle for many small businesses," said state JEDA executive director Harry Huntley, as reported in the Charleston Regional Business Journal. "These critical funds will provide a powerful reason for banks to lend to the job creation machines we have in South Carolina that are just waiting for their spark."

The Palmetto State had an unemployment rate of 10.5 percent in the month of June. An increase in the number of small businesses and expansion of existing ventures will hopefully create jobs and boost the local economy, ultimately helping to pull the state out of the current recession.

The program is meant to assist businesses with 500 or less employees, and loan amounts can be as much as $5 million. Any type of business loan qualifies for state backing (except real estate speculation). The program will assist banks in making riskier advances than would normally be approved, as the credit initiative covers a set of loans for the financier rather than individual mortgages.