1. Business Development Corporation August 15, 2012

2. 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

3. 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.

4. 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

5. 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.

6. Proceeds must be used for a business purpose Examples: working capital, purchase and/or 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 non- affiliated financial institution is permitted

7. 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

8. BDC will either be fully subordinate or equal (pari-passu)as determined at loan inception Lender responsible for all liquidation and foreclosure proceedings

9. Pre-BDC Approval Executed Master Loan Participation Agreement and Master Capital Access Program (CAP) Agreement (separate programs, but both agreements required) Application for Participation Lenders Internal Credit Memo/Approval Package Borrowers Financials (Tax Returns, Interim Balance Sheet and P&L, Credit Report, Personal Financial Statement)

10. 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

11. Edwin Lesley 803-744-0301 ELesley@BDCofSC.org Ryan Barnes 803-744-0312 RBarnes@BDCofSC.org Master Participation Agreement, Participation Certificate, Borrower Certification and additional program details and definitions available at www.BDCofSC.orgwww.BDCofSC.org