South Carolina Code 34-43-40. Certification as community development corporation and community development financial institution; application for and term, renewal, and revocation of certification; reports; notice and hearing; tax credit
(B) Application for certification must be in writing under oath and in the form prescribed by the department. It must contain the information the department requires, including names and addresses of the partners, officers, directors or trustees, and those principal owners or members who provide the basis for investigations and findings contemplated by subsection (C). At the time of making the application, the applicant must pay to the department a fee for investigating the application, as prescribed by the department, in an amount sufficient to defray the department’s costs of investigating the applicant.
Terms Used In South Carolina Code 34-43-40
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Community development corporation: means a nonprofit corporation which:
(a) is chartered pursuant to Chapter 31 of Title 33;
(b) is tax exempt pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986, as amended;
(c) has a primary mission of developing and improving low-income communities and neighborhoods through economic and related development;
(d) has activities and decisions initiated, managed, and controlled by the constituents of those local communities;
(e) has a primary function of developing projects and activities designed to enhance the economic opportunities of the people in the community served, including efforts to enable them to become owners and managers of small businesses and producers of affordable housing and jobs in the community served;
(f) does not provide credit, capital, or other assistance from public funds in an amount greater than twenty-five thousand dollars at one time or in one transaction. See South Carolina Code 34-43-20 - Community development financial institution: means an organization that:
(a) has a primary mission of promoting community development by providing credit, capital, or development services to small businesses or home mortgage assistance to individuals including, but not limited to, capital access programs, microlending, franchise financing, and guaranty performance bonds;
(b) maintains, through representation on its governing board, accountability to persons in need of the institution's services;
(c) is not an agent or instrumentality of the United States, or of a state or political subdivision of a state nor maintains an affiliate relationship with any of them;
(d) maintains a goal of providing a majority of its services to low-income individuals, minorities, females, or rural areas;
(e) provides capital and technical assistance to small and micro businesses or mortgage assistance to individuals;
(f) does not provide credit, capital, or other assistance in an amount greater than two hundred fifty thousand dollars at one time or in one transaction. See South Carolina Code 34-43-20 - Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Department: means the South Carolina Department of Commerce. See South Carolina Code 34-43-20
- Oath: A promise to tell the truth.
(C) Upon the filing of the application and payment of the fees, the department shall investigate the facts concerning the application and the requirements of either § 34-43-20(2) or (3).
(D) Certification of a community development corporation or a community development financial institution expires two years from the date of certification. This certification may be renewed for additional two-year periods upon application by the corporation or institution and approval by the department.
(E) A community development corporation and a community development financial institution shall file with the department, on or before the anniversary date of its certification, an annual report for the preceding calendar year. The report must give information about its financial condition, and must include balance sheets for the beginning and end of the accounting period, a statement of income and expenses for the period, a reconciliation of surplus with the balance sheets, a schedule of assets used by and useful for the corporation or the institution to conduct its business, an analysis of charges, size and type of loans, and other relevant information in form and detail as the department prescribes. The report must be made under oath and in the form prescribed by the department, which shall make and publish annually an analysis and recapitulation of the reports for inclusion in its annual report to the Governor and General Assembly as provided in § 34-43-30(B).
(F) The department may not renew certification of a corporation or an institution unless it continues to comply with the regulations of the department and provisions of § 34-43-20(2) or (3).
(G) The department may revoke the certification of a corporation or an institution upon a finding that the corporation or institution does not comply with the provisions of § 34-43-20(2) or (3).
(H) The department shall serve a notice of intent not to grant certification, intent not to renew certification, or intent to revoke certification upon the corporation or institution with a brief statement of the reasons alleged. The corporation or institution may request a hearing within thirty days of receiving notice by filing a request for a hearing with the department. The hearing must be held in accordance with Article 3, Chapter 23 of Title 1, the Administrative Procedures Act.
(I) A taxpayer may not claim the tax credit provided for in § 12-6-3530 unless the corporation or institution in which the investment is made is certified by the department at the time the investment is made. A taxpayer who invested in good faith in a certified corporation or institution may claim the credit provided in § 12-6-3530 notwithstanding the fact that the certification is later revoked or not renewed by the department.