Closing fund
South Carolina’s Closing Fund provides flexible discretionary grant funding for qualifying high-impact economic development projects when additional assistance may be needed to support a company’s decision to locate or expand in the state.
Funding is awarded to eligible local governments on behalf of economic development projects and may help address site, infrastructure, real property and other qualifying project needs. The Closing Fund is supported through appropriations from the South Carolina General Assembly.
Overview
The Closing Fund is administered by the South Carolina Coordinating Council for Economic Development (Coordinating Council) and is designed to provide flexible assistance for competitive economic development projects involving new jobs and capital investment.
Closing Fund assistance may be considered for qualifying projects anywhere in South Carolina, regardless of county development tier. Funding is discretionary and is intended to help address project needs that may be important to a company’s location or expansion decision.
Companies do not apply directly for Closing Fund grants. For business development projects, the local government serves as the grant applicant and recipient, while SC Commerce works with the company and local partners to identify potential project needs.
Eligibility
Closing Fund assistance is considered for competitive business development projects involving new or expanding companies in South Carolina.
Funding is flexible and may support qualifying project costs such as:
- Real property improvements
- Building construction or improvements
- Site preparation
- Road improvements
- Water and sewer infrastructure
- Other qualifying infrastructure and economic development needs
The Closing Fund may support a broader range of project needs than the Economic Development Set-Aside Program, although funding is generally used for similar site, infrastructure and real property expenses.
How funding works
Closing Fund awards are discretionary and evaluated individually based on the needs and economic impact of each project.
For competitive business development projects, the Coordinating Council may consider factors such as:
- Project competitiveness
- Number and type of jobs created
- Anticipated wages
- Capital investment
- Industry and project type
- Project cost and cost-effectiveness
- Infrastructure needs
- Other available funding
- Anticipated tax revenue and economic impact
- Financial viability of the company
Funding is tied to specific job creation and capital investment commitments. A performance agreement allows the Coordinating Council to require repayment of a portion of the grant if those commitments are not met.
Closing Fund availability depends on appropriations from the South Carolina General Assembly and available program funding.
Application process
For business development projects, an SC Commerce project manager works with the company and local government to identify project needs and develop preliminary information, including anticipated jobs, wages, investment, project scope and costs.
If the project meets applicable evaluation criteria, the local government may be invited to submit a formal application to SC Commerce.
The Coordinating Council reviews each funding request and has discretion to approve, deny or negotiate the amount and terms of an award.
If funding is approved:
- The local government enters into a grant agreement with the Coordinating Council
- The company, local government and Coordinating Council enter into a performance agreement establishing applicable job creation and capital investment commitments
- Grant funds reimburse approved project costs in accordance with the project budget and agreement terms
Interested in Closing Fund assistance?
Companies considering a new location or expansion should connect with an incentives expert to discuss the project and determine whether Closing Fund assistance may be appropriate.
