South Carolina Creates New Venture Fund

The South Carolina legislature voted to create a new venture investment fund to spark the creation of more technology-based companies capable of producing high-paying jobs across the state. The new bill establishes a fund at the state Commerce Department that could borrow as much as $100 million. The fund would be administered by a board of seven people appointed by the speaker of the House, the Senate president pro tem and the governor.

The board would invest the money in venture capital companies that in turn would invest in startup businesses. If the investments make money, the banks will be paid back and no tax credits will be used. If the investments lose money, the banks can deduct losses from their state taxes.

Similar funds exist in Oklahoma, Arkansas and Iowa.

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