JEDA Program to Spur More than $180 Million in Lending
US Treasury Approves JEDA as Administrator of State Small Business Lending Initiative
COLUMBIA, SC – The South Carolina Jobs-Economic Development Authority (JEDA) will be leveraging $18 million in federal funds to spur more than $180 million in job-creating lending activity to small businesses.
The South Carolina Senate has authorized JEDA to implement the capital access program (SC SSBCI CAP), with Business Development Corporation of South Carolina (BDC) serving as administrator. The BDC will take a lead role in reaching out to the state’s banking industry to participate.
The funds are the Palmetto State’s share of the $1.5 billion State Small Business Credit Initiative (SSBCI), created nationwide by the U.S. Treasury Department as part of the U.S. Small Business Jobs Act signed into law last fall. State-run programs apply for the funds, which then are used to boost credit that private lenders can make available to qualifying credit-worthy small businesses.
“The state had to show that it could expect this investment would return at least $10 in new private lending for every $1 in federal funding. We, too, expect this to happen. And perhaps more importantly, this access to funds will empower small businesses across our state to open, expand and do whatever it takes to ensure their own success and put more people to work,” said Lloyd Hendricks, President/CEO of the South Carolina Bankers Association (SCBA), a key supporter who lobbied to bring this program to South Carolina.
Harry Huntley, Executive Director of JEDA, said the funds will help the state’s businesses and business lenders participate in a national economic recovery. “Access to capital is a struggle for many small businesses,” Huntley said. “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.”
Edwin Lesley, President/CEO of BDC, said his organization is eager to get started administering the $18 million capital access program for the benefit of enterprising business people across South Carolina. “Participation by our state’s banking industry is essential. This kind of incentive can really help jump start a lot of businesses and our state’s economy in general,” Lesley said. “I want to join JEDA and SCBA in thanking our State Officials who took this opportunity to make this happen.”
The State Senate introduced the resolution where it was passed under the leadership of the chief sponsors, John Land of Manning, Nikki Setzler of West Columbia, Hugh Leatherman of Florence and Darrell Jackson of Hopkins. The Joint Resolution was then passed overwhelmingly by the House, where the leadership of Rep. Steve Moss of Blacksburg was critical to its success. Gov. Nikki Haley then signed it into law. JEDA also credits Commerce Secretary Bobby Hitt and Attorney General Alan Wilson for their work on the resolution.
For more information about the SSBCI program, contact BDC at www.businessdevelopment.org or call (803) 798-4064 or contact JEDA.