The bill S. 1027 aims to amend the South Carolina Code of Laws by adding Section 6-1-200, which authorizes Community Development Corporations (CDCs) to lend money to qualified borrowers for improvements to real property within their designated service areas. The bill defines key terms related to CDCs, such as "Community Development Corporation," "designated service area," and "qualified borrower." It establishes conditions and limitations for the lending authority, including the requirement for CDCs to adopt written loan policies, maintain adequate records, and report annually to the governing body that created them. Additionally, the bill clarifies that loans made under this section do not constitute engaging in the "business of lending," thus exempting CDCs from needing a lending license.

Furthermore, the bill includes a sunset clause, stating that the provisions of Section 6-1-200 will terminate on June 30, 2035, unless reauthorized by the General Assembly. This termination will not affect the validity of any loans made prior to that date. The governing body of the county or municipality that created the CDC is also granted the authority to impose additional conditions on the CDC's lending practices, including requiring prior approval for loans above a specified threshold. The act will take effect upon approval by the Governor.

Statutes affected:
03/18/2026: 6-1-200
Latest Version: 6-1-200