16 start-up companies financed by taxpayers have failed to repay $4.9 million

SC Launch Inc., an affiliate of the state-created SC Research Authority, was repaid $19,152.

That’s less than 1% of th $4.9 million since December 2015, records show.

The records were provided by the SC Research Authority under the state Freedom of Information Act.

SC Launch enters agreements with start-up companies with “potential for returns on investment based on the companies’ future financial success.”

The businesses that defaulted included medical and technology companies

From March 2019 to July 2020, SC Launch and SCRA provided almost $5. million in grants, loans or funding to 59 start-ups.

The single-largest grant was $50,000. The maximum loan was $300,000.

The SC Court of Appeals in July ordered a manufacturer of an “alternatively powered multi-purpose maintenance vehicle” to pay a $200,000 “relocation” fee after the company decided to move out of state.

The SCRA denied our request to identify the number of employees at each company that received financial aid or defaulted.

It contended those records can be kept secret under the Freedom of Information Act.

From 2016 to 2019, start-up companies created 3,395 full-time jobs, records show. SC Launch’s purpose is to “facilitate applied research, product development and commercialization programs and strengthen South Carolina’s knowledge economy to create high paying jobs.”

The SCRA doesn’t receive direct state money but when it was created, lawmakers gave $500,000 and about 1,400 acres of undeveloped land, worth an estimated $10.7 million then.

Brundrett is news editor of The Nerve (www.thenerve.org). Contact him at 803- 254-4411 or rick@thenerve.org