Business Development Corporation August 15, 2012

 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

 BDC purchases 25% participation in qualified loans  Maximum BDC Participation Amount: $1,000,000 (exceptions may apply)  Subordinate or equal ( at loan inception pari-passu )--agreed upon  Lender is responsible for all loan servicing activities. BDC has no direct relationship with borrower.

     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

 Small businesses in state of South Carolina* with 500 or fewer employees**  Total loan request of $5 million or less**  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.

 Proceeds must be used for a business purpose  Examples financing : working capital, purchase and/or construction of owner-occupied real estate, purchase of equipment, term loan financing, lines of credit, receivables, inventory, trade cycle  Refinancing of debt currently held with a non affiliated financial institution is permitted

      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

 ( 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)  Application for Participation  Lender’s Internal Credit Memo/Approval Package  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)  Participation Certificate  All Bank Closing Documents (Note, Disbursement Authorization, Guarantees, etc.)  Borrower Financial Statements to be sent to BDC by lender on annual basis

Edwin Lesley 803-744-0301 [email protected]

Ryan Barnes 803-744-0312 [email protected]

Master Participation Agreement, Participation Certificate, Borrower Certification and additional program details and definitions available at www.BDCofSC.org