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COLUMBIA (WACH) -- The Senate Finance Committee advances a bill designed to encourage millionaires to invest in South Carolina's fledgling small businesses

The bill would allow so-called "angel investors" to claim up to 35 percent of their investment as a credit on their state income taxes. The bill caps the state's revenue loss at $5 million annually.

"Angel investors" is a term defined by the federal Securities and Exchange Commission.

Supporters of the bill say it encourages the wealthy to make investments into businesses that are too risky for banks and venture capitalists but could become job creation factories with some needed start-up cash.

Nearly two dozen states already give such tax credits, including neighboring Georgia and North Carolina.