A growth process for diluted magnetic SiC has been explored for as-grown epitaxial layers by introducing Mn ions. Depending on the growth conditions, either high Mn doping or excess concentrations with second phases may form in the layers. Under those conditions where compound phases appear, there is a magnetic response in the material as demonstrated using SQUID measurements with a transition temperature of 160K in the as-grown material. There is no response in layers for which the second phases have been removed by etching.