Appalachian Development Corporation

“The organization is organized with members.”

“Members have the power to elect or appoint members of the governing body.”

“Management reviews the tax return with the board before filing.”

“Board of directors enforces conflict of interest policy through annual reviews.”

“Board determines compensation by using a nadco compensation survey during the compensaion process.”

“Documents are made available to the public upon request.”

“Appalachian development corporation ("adc") is a nonprofit organization formed to further the economic development of south carolina by offering financing to qualified small businesses. The principal objective of the appalachian development corporation shall be to benefit the community by fostering increased employment opportunities and expansion of business and industry for citizens of the stated area.”

“Processing of usda rural development business and industry guarantee program (b&i) and the small business administration 504 loans. Adc is an approved lender for the u.s. Department of agriculture (usda) rural development business and industry guarantee program (b&i). Funds can be used to provide long-term financing for acquisition and/or renovation of capital assets including land, buildings and equipment, working capital, and refinancing. Virtually all types of businesses in the covered area of south carolina are eligible for this program subject to the population density requirements of the usda. Adc obtains a guarantee from the usda on up to 80% of the loaned amount and then sells participation in these loans in a secondary market. Adc retains ownership of a portion of the unguaranteed loans ranging from 5% to 20% per loan. At september 30, 2021, there were no loans granted under the b&i program outstanding.”

“State of south carolina revolving loan fund the south carolina budget and control board awarded a grant to the scacog through the federal match program for the purpose of relending to eligible borrowers. Adc is considered a sub-recipient of this grant. As of september 30, 2021, there was one oustanding loan. The loan amount was 148,000, and calls for monthly installment payments of principal and interest with interest rates of 5.5%. Appalachian regional commission revolving loan funds (scacog) the appalachian regional commission ("arc") awarded grants to the scacog for revolving loan funds. Adc is considered a sub-recipient of the grants and the grant funds and all related activity is reflected in the financial statements of adc. Adc is currently responsible for the following two grants: the arc revolving loan fund consists of the original grant of 1,000,000 from 1988, amended five times between 1994 and 1998 to a total grant amount of 3,250,000. In 2014 and 2016, adc returned funds totaling 363,144 for potential future utilization. At september 30, 2021, there were eighteen loans outstanding. Loan amounts range from 60,500 to 397,250, and call for monthly installment payments of principal and interest with interest rates ranging from 1.0% to 8.0%. Since 2016 adc has utilized some of the funds held by arc. The amount held by arc at september 30, 2021 was 207,412. The arc entrepreneurial initiative revolving loan fund consists of the original grant of 425,000 from 1998, with additional grants and amendments issued from 2002 to 2011 for a total grant amount of 3,175,000. In 2014 and 2016, adc returned funds totaling 382,421 for potential future utilization. As of september 30, 2021, there were eleven loans outstanding. Loan amounts range from 100,000 to 349,300, and call for monthly installments of principal and interest with interest rates ranging from 4.5% to 6.5%. Since 2016 adc has utilitzed some of the funds held by arc. The amount held by arc at september 30, 2021 is 311,770. Appalachian regional commission revolving loan funds (adc) during 2011, the arc awarded a grant of 600,000 directly to adc for additional revolving loan funds. In 2014 and 2016, adc returned funds totaling 122,785 for potential future utilization. As of september 30, 2021, there were three loans outstanding. Loan amounts range from 76,275 to 103,200 and call for monthly installments of principal and interest with interest rates ranging from 5% to 6%. Since 2016 adc has utilitized some of the funds held by arc. The amount held by arc at september 30, 2021 is 56,120.”