Snedeker, who matched the course record with a 62 in the first round, stands at 17-under-par 127 at Black Creek Club for a one-shot lead over three players.
That score is three shots better than the previous 36-hole tournament record established by Matthew Goggin in 2005.
Garrett Willis shared the first-round lead with Snedeker, but fell one shot off the pace with a 66. He was joined in second place by Boo Weekly (63) and Craig Bowden (65).
Kevin Gessino-Kraft is alone in fifth place at minus-15 after a second-round 66. Andrew Buckle shot his second consecutive 65 and is one stroke further back in sixth.
'If you're striking it well, almost every hole is a possible birdie,' said Buckle. 'It's definitely a lot of fun.'
Snedeker, a Nashville native, collected eight birdies with just one bogey in his second round. He opened with a par, then birdied the par-4 second, the par-5 fourth and par-4 fifth to reach 13 under.
The 25-year-old moved to minus-15 around the turn with back-to-back birdies at the eighth and ninth. He added a birdie at the par-3 11th and one at the par-5 14th before dropping his only shot of the tournament so far at the par-4 15th.
Snedeker got that shot back and reached minus-17 again with his second birdie in a row at the par-5 18th.
Still looking for his first Nationwide Tour win, Snedeker leads after 36 holes for the first time.
'It's nice to come to an event and be playing well and get some good breaks and make a few putts,' said Snedeker.
Rick Price, David Hearn, Dicky Pride, John Merrick and Jarrod Lyle share seventh place at 13-under-par 131. Nick Malinowski, David Mathis and Charlie Wi are knotted one shot further back in 12th.
The cut line fell at minus-7 with 60 players moving on to the weekend. The cut equals the lowest in the Nationwide Tour's 17-year history.