South Carolina small businesses looking to grow will soon have a new source of financial aid.
The State Small Business Credit Initiative is making up to $18 million in reserve funds available to banks in an effort to encourage those banks to loan to credit-worthy small businesses. The South Carolina Jobs Economic Development Authority says the loans will go up to $5 million. The state already has a similar program, but it can loan no more than $100,000 right now.
The additional funds were made available by the Small Business Job Act that was signed into law by President Obama last September. The law was co-sponsored by South Carolina Congressman Jim Clyburn. It passed largely along party lines, with Republicans opposing the additional spending it created.
More details about the new loan program will be released in a news conference next week.