BANKER

HARRY A. HUNTLEY, CPA EXECUTIVE DIRECTOR JOBS-ECONOMIC DEVELOPMENT AUTHORITY (JEDA)

Why was BDC selected to manage this new lending program?

BDC’s management team has extensive operational capacity, skills, and experience in making commercial loans in general and SSBCI LPP loans specifically. BDC is a statewide lending institution with an extensive network of member banks throughout South Carolina who already do business with their team.

Also, BDC designed the SSBCI 1.0 loan program and all related systems and processes needed to ensure its success. The U.S. Treasury has regarded it as being an exemplary program and it has been frequently cited as a positive example of an LPP to other states. In addition, the program has had outstanding results in deploying capital, creating leverage, and reaching underserved borrowers.

What is the expected performance of this program?

Taking into account the existing knowledge and utilization of our LPP, we believe the program will have performance as follows:

Anticipated results based on funding of approximately $50.3 Million for a 10-year period:

• Number of Loans: expectations are for 892 loans totaling $804 Million;

• Average Size of Loan: $902 thousand;

• Losses: estimated losses at 1%, based on BDC’s actual loss experience of nearly 0%.

PETER SHAND PRESIDENT & CEO

BUSINESS DEVELOPMENT CORPORATION (BDC)

For bankers, what are the key points they need to know about this program?

SSBCI 2.0 is a loan participation program in which BDC can purchase an interest in a bank’s owner-occupied real estate loan and subordinate our interests to the bank in the event of default. This has the effect of giving the bank a lower loan-to-value on the collateral and can lead to approving loans that would not qualify otherwise. The program is designed to target for-profit businesses with 500 or fewer employees and whose loan request is $5 million or less on average. Some other criteria include:

• Borrower Equity Requirement: Minimum of 5%.

• Must have acceptable historic debt service coverage.

• Minimum BDC Participation Amount: $50,000.

• Maximum BDC Participation Amount: $1,000,000.

• Maximum Participation Percentage: The size of each participation will be determined by the amount needed for the bank lender to approve the loan. BDC expects that the majority of loans will fall in the 10%-25% range, although an amount of up to 49% is allowable.

How is this program different than BDC’s other lending programs?

Most of our other loan programs at BDC involve the Small Business Administration (SBA), which includes obtaining their approval for the loan. The SSBCI 2.0 loan program is not an SBA loan. Additionally, whereas startups would not qualify for SSBCI, our SBA loan programs can also consider loans for new business formation.

If my customers have questions about the program, do you have resources explaining the program to help answer their questions?

Yes, we have an online brochure specifically for borrowers, which explains the program and how it works. This brochure is featured on our website at: https://www.businessdevelopment.org/ssbci.html

In addition, the Small Business Development Center (SBDC) can provide borrowers with technical assistance with the application and help borrowers understand the program. The SBDC has several locations in South Carolina, and can be contacted at: https://www.scsbdc.com/

If I have questions or would like to use this program, who should I contact at BDC?

Our lending team of Nat Green, Mike Reis and Rob Evans can assist bankers with all SSBCI questions. Plus, if a borrower needs help finding a bank with which to apply, they can assist there too.

Kevin T. Adams

Jeff Benjamin

Ryan Benton

Nancy Bergin

Marc Bogan

Todd M. Bogdan

Laurence Bolchoz

Thomas Bouchette

James Boyd

Renee Brooks