Business Development Corporation
August 15, 2012
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Small Business Jobs Act of 2010
US Treasury has authorized BDC to utilize up
to $15 million to purchase qualified loan
participations with financial institutions in SC
Program is limited in amount, and it is
expected that full utilization of the $15
million will occur rapidly
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BDC purchases 25% participation in qualified
loans
Maximum BDC Participation Amount: $1,000,000
(exceptions may apply)
Subordinate or equal (pari-passu)--agreed upon
at loan inception
Lender is responsible for all loan servicing
activities. BDC has no direct relationship with
borrower.
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Interest Rate and Fees determined by lender,
subject to BDC concurrence.
BDC receives pro-rata share of origination fee
only (no other servicing fees)
Borrower makes one payment, and lender
remits pro-rata share of Principal & Interest
to BDC (discuss option first out on Principal)
No additional cost to borrower
No cost to lender to participate in program
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Small businesses in state of South Carolina* with
500 or fewer employees**
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Total loan request of $5 million or less**
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For profit and non-profit companies eligible
*Business must have primary place of business in SC. Operations in
other states permitted.
**Larger numbers of employees and larger loans may be
considered.
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Proceeds must be used for a business purpose
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Examples: working capital, purchase and/or
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construction of owner-occupied real estate,
purchase of equipment, term loan financing,
lines of credit, receivables, inventory, trade cycle
financing
Refinancing of debt currently held with a nonaffiliated financial institution is permitted
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Refinancing of debt currently with same
financial institution (exceptions apply)
Passive real estate investment
Speculative activities
Gambling
Pyramid Sales
Activities prohibited by Federal or State law
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BDC will either be fully subordinate or equal
(pari-passu)—as determined at loan inception
Lender responsible for all liquidation and
foreclosure proceedings
Pre-BDC Approval
 Executed Master Loan Participation Agreement
and Master Capital Access Program (CAP)
Agreement (separate programs, but both
agreements required)
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Application for Participation
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Lender’s Internal Credit Memo/Approval Package
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Borrower’s Financials (Tax Returns, Interim
Balance Sheet and P&L, Credit Report, Personal
Financial Statement)
Post-Closing
 Borrower Certification (A condition of participation in
this program includes certification from both lender
and borrower that neither has been convicted of a
sex offense against a minor)
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Participation Certificate
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All Bank Closing Documents (Note, Disbursement
Authorization, Guarantees, etc.)
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Borrower Financial Statements to be sent to BDC by
lender on annual basis
Edwin Lesley
Ryan Barnes
803-744-0301
ELesley@BDCofSC.org
803-744-0312
RBarnes@BDCofSC.org
Master Participation Agreement, Participation Certificate,
Borrower Certification and additional program details and
definitions available at www.BDCofSC.org