{"data":{"id":"us-sc/s.c.-code-ann.-33-37-1040","jurisdiction":"us-sc","citation":"S.C. Code Ann. § 33-37-1040","heading":"Participating financial institutions; functions and duties.","body":"A participating financial institution originating a loan to a small business pursuant to this article shall:\n(1) use its existing business and banking network to market and perpetuate the CAP so as to promote economic development among small businesses in South Carolina;\n(2) provide financing to small businesses for their business purposes including, without limitation, expansion, start-up, purchase of fixed assets or inventory, facility or technology upgrading, and working capital;\n(3) limit loans outstanding to one small business borrower pursuant to this article and the CAP to an aggregate balance outstanding of two hundred fifty thousand dollars or a lesser amount the BDC determines, in the exercise of its discretion for the benefit of the CAP and the small business community at large in this State;\n(4) limit loans made pursuant to this article and under the CAP to those that are not guaranteed or otherwise assisted by another governmental entity or program;\n(5) set aside an amount of at least one and one-half percent but no more than three and one-half percent of the principal amount of the loan, into the loss reserve account;\n(6) obtain from the small business an amount equal to the reserve contribution made by the participating financial institution with respect to the loan;\n(7) forward the funds collected and determined pursuant to items (5) and (6) to BDC for deposit into the loss reserve account together with a written report in the form and with the content BDC prescribes; and\n(8) report annually to BDC, in the manner and with the supporting information BDC prescribes, the outstanding balance of loans made by it pursuant to the CAP, and a projection and estimate of loans it anticipates making pursuant to the program in the succeeding year.","path":["Title 33 - CORPORATIONS, PARTNERSHIPS AND ASSOCIATIONS","CHAPTER 37 Business Development Corporations","ARTICLE 10 Capital Access Program"],"source_url":"https://www.scstatehouse.gov/code/t33c037.php","current_through":"2025 Session of the General Assembly","vintage":"","retrieved_at":"2026-09-02T07:04:09Z","sha256":"e23bf282bf5530c10e5a7165b5fa93338e1c684d2ab11c92ad8d3aef3bf9db47","source_id":"us-sc","stale":false,"prev":"us-sc/s.c.-code-ann.-33-37-1030","next":"us-sc/s.c.-code-ann.-33-37-1050"},"notice":"GroundRules: Original legal text. Not legal advice."}