You may have heard about a new government initiative that is infusing a massive amount of funding for small businesses across the US. It's called the State Small Business Credit Initiative (SSBCI), which allows every state in the US to apply for some of the $10B in federal funding for small businesses.
South Carolina has officially been approved for $62M in funding from the SSBCI program. That means your small business can apply for financing today.
What Companies are Eligible?
Before you apply, make sure you're eligible for these loans. The good news is that the eligibility is quite wide open: Your business must have 500 or fewer employees and have a loan request of $5 million or less. Most forms of for-profit and nonprofit organizations are eligible for SSBCI funding in South Carolina:
- For-profit corporation
- Limited liability company
- Joint venture
- Sole proprietorship
- State-designated charitable, religious or other non-profit or eleemosynary institution
- Government-owned corporation
- Consumer or marketing cooperatives
What Kind of Funding can South Carolina Businesses Receive?
The SSBCI program in South Carolina specifically is for short to long-term loans for small businesses and nonprofits.
Benefits of SSBCI Funding for South Carolina Small Businesses
There are many benefits to getting funding through this program. Here are the main reasons:
- Less stringent approval process for most small businesses
- Provides small business loans with reduced down payments while reducing the risk for the lender.
- Provides small business loans at attractive terms
- Provides a flexible and non-bureaucratic resource for funding
- Provides fast disbursement of funds to the borrower
- Allows borrowers to receive a quick response to a loan request
How Does SSBCI Funding Work in South Carolina?
Each state has its own approach to distributing SSBCI funding to small businesses, and South Carolina is no different.
In South Carolina’s case, the process is relatively simple: you apply through your bank. In other words, you don’t apply through the government, this is a partnership with private lenders.
What can the Funding be Spent on?
Proceeds must be used for a business purpose in the state of South Carolina, which includes (but is not limited to) the following:
- Working capital
- Equipment and inventory
- Start-up costs
- Term loan financing
- Lines of credit
- Trade cycle financing
- Purchase or construction renovations of non-passive real estate
What CAN’T Funding be Spent on?
- Passive real estate investment
- Speculative activities, gambling
- Pyramid sales
- Activities prohibited by Federal or State law.
Documentation Needed to Apply
Document requirements will vary by bank, but expect to provide the following:
- Business Plan
- Legal picture ID
- 3 months of personal bank statements
- 3 months of business bank statements, if available
- Personal Cash Flow Form (provided by bank)
- Use of Funds Form (provided by bank)
- Personal Financial Statement