Bill > S1027

This bill authorizes Community Development Corporations (CDCs), which are defined as nonprofit organizations created by or at the direction of a county or municipality with the primary goal of economic and community development in a specific geographic area, to lend money to qualified borrowers for property improvements within their designated service area or on property the CDC owns an interest in. These loans can be funded by various sources available to the CDC, but the CDC must establish written loan policies covering application requirements, underwriting, interest rates, terms, collateral, and default procedures, and the interest rate cannot exceed legal limits or those authorized by the creating local government. Loan proceeds can only be used for property improvements, and the CDC must maintain detailed records of all loans, which are subject to inspection by the local governing body, and provide annual reports on loan activity. Importantly, this bill clarifies that these lending activities do not require the CDC to be licensed as a bank or supervised lender, nor do they constitute engaging in the "business of lending" under state law, and the authority granted is in addition to any other powers the CDC may possess. Local governments can impose additional restrictions or suspend the CDC's lending authority. The provisions of this act will expire on June 30, 2035, unless reauthorized by the General Assembly, though loans made before that date will remain valid.

Budget and Finance

https://www.scstatehouse.gov/billsearch.php?billnumbers=1027&session=126&summary=B