APPALACHIAN DEVELOPMENT CORPORATION
880 SOUTH PLEASANTBURG DR STE 3-E, GREENVILLE, SC 29607 www.adcloans.com

---

Organizations Filed Purposes: 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.

APPALACHIAN DEVELOPMENT CORPORATION ("ADC") IS A NONPROFIT ORGANIZATION FORMED TO FURTHER THE ECONOMIC DEVELOPMENT OF SOUTH CAROLINA BY OFFERING FINANCING TO QUALIFIED SMALL BUSINESSES.

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, 2019, ONE LOAN GRANTED UNDER THE B&I PROGRAM WAS OUTSTANDING. THE ORIGINAL LOAN AMOUNT WAS 2,700,000, WITH ADCS RETAINED OWNERSHIP PORTION BEING 270,000 (APPROXIMATELY 11,000 AT SEPTEMBER 30, 2019). THE INTEREST RATE IS 6.0% AND THE LOAN MATURES IN FEBRUARY 2021.

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, 2019, THERE WERE TWO OUTSTANDING LOANS. LOAN AMOUNTS RANGE FROM 100,000 TO 148,000, AND CALL 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 DE-OBLIGATION. AT SEPTEMBER 30, 2019, THERE WERE TWENTY-THREE LOANS OUTSTANDING. LOAN AMOUNTS RANGE FROM 48,000 TO 457,861, AND CALL FOR MONTHLY INSTALLMENT PAYMENTS OF PRINCIPAL AND INTEREST WITH INTEREST RATES RANGING FROM 1.0% TO 8.0%. 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 DE-OBLIGATION. AS OF SEPTEMBER 30, 2019, THERE WERE SEVENTEEN LOANS OUTSTANDING. LOAN AMOUNTS RANGE FROM 35,500 TO 275,000, AND CALL FOR MONTHLY INSTALLMENTS OF PRINCIPAL AND INTEREST WITH INTEREST RATES RANGING FROM 2.0% TO 7.0%. 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 DE-OBLIGATION. AS OF SEPTEMBER 30, 2019, THERE WERE THREE LOANS OUTSTANDING. LOAN AMOUNTS RANGE FROM 35,000 TO 200,000 AND CALL FOR MONTHLY INSTALLMENTS OF PRINCIPAL AND INTEREST WITH INTEREST RATES RANGING FROM 5.5% TO 6.5%.

ADC PARTICIPATES IN THE U.S. DEPARTMENT OF AGRICULTURE ("USDA") INTERMEDIARY RELENDING PROGRAM ("IRP"). UNDER THE PROGRAM, ADC HAS RECEIVED SIX LOANS FROM THE USDA SINCE 2003 TOTALING 4,078,219 FOR THE PURPOSE OF RELENDING TO FINANCE BUSINESS FACILITIES AND COMMUNITY DEVELOPMENT PROJECTS IN RURAL AREAS. DETAILS OF THE REPAYMENT TERMS OF THE LOANS WITH THE USDA ARE DISCUSSED IN NOTE E. THE LOANS RECEIVABLE AND CASH ACCOUNTS ASSOCIATED WITH THIS PROGRAM ARE PLEDGED AS COLLATERAL AGAINST THE OUTSTANDING LOANS. AS OF SEPTEMBER 30, 2019, THERE WERE FIFTEEN LOANS OUTSTANDING. LOAN AMOUNTS RANGE FROM 56,688 TO 201,928, AND CALL FOR MONTHLY INSTALLMENTS OF PRINCIPAL AND INTEREST WITH INTEREST RATES RANGING FROM 2.0% TO 6.5%.

---

---

Data for this page was sourced from XML published by IRS (public 990 form dataset) from: https://s3.amazonaws.com/irs-form-990/202040629349300714_public.xml