Twain Private Credit Announces Federal Approval for New SBIC

News provided by

Jul 24, 2024, 07:45 ET

Mississippi Welcomes Its First Active SBIC in Recent History

RIDGELAND, Miss., July 24, 2024 /PRNewswire/ -- Twain Private Credit proudly announces the launch of its Truman Fund, following approval from the U.S. Small Business Administration (SBA) for a new Small Business Investment Company (SBIC) license. This landmark achievement marks the long-awaited presence of an active SBIC in Mississippi, unlocking a windfall of capital for local businesses looking to grow and expand. Twain Private Credit and the Truman Fund will also have offices and active investment in Oklahoma and Tennessee.

The SBIC program, managed by the SBA, is a highly competitive initiative designed to provide long-term capital to small businesses across the United States. SBA commits up to $5 billion annually to provide low-cost loans to scale and enhance the risk-adjusted returns of private equity and private credit funds focused on investing in U.S. small businesses and startups. Gaining approval for an SBIC license is a rigorous process, indicating a high level of confidence from the SBA in Mississippi's economic environment and Twain Private Credit's capability to manage and deploy capital effectively. This approval is particularly noteworthy as it brings an active SBIC to Mississippi for the first time on record, signaling a renewed commitment to the state's entrepreneurial ecosystem.

The Truman Fund is set to raise substantial private capital, which it will leverage alongside capital from the SBA, to provide financial support for small and medium-sized enterprises in Mississippi and the broader southeast region. Twain Private Capital is actively considering and seeking limited partners with experience in the region.

The Truman Fund will also target investments to fill the capital gap in neighboring states–such as Oklahoma, Arkansas, Alabama, and Georgia which do not have an actively investing SBIC. By channeling funds into businesses throughout the southeast, Twain Private Credit will stimulate local job creation, innovation, and economic development.

"There hasn't been a better time to invest in Mississippi," said Governor Tate Reeves. "Our state's economy is thriving, so it shouldn't come as a surprise that the private sector wants to continue investing here. Mississippi's small businesses are worthy of investment, and I'm glad to see they will have access to this additional capital. I congratulate Twain Private Credit on the Truman Fund's licensure and look forward to seeing the positive impact their investment will have on our state."

"Receiving SBA approval for our SBIC is a monumental achievement for Twain Private Credit," said Wade Smith, Principal of Twain Private Credit. "The Truman Fund represents our dedication to empowering small and growing businesses in Mississippi and beyond. We are ready to play a role in driving economic growth and supporting the entrepreneurial spirit that is so vibrant in our community."

"We are proud to be trusted with these resources, and excited to get to work putting money into small businesses in our region," said Mack Renner, Principal of Twain Private Credit. "We know that these resources will make a difference for entrepreneurs and workers who are ready to get to the next level."

"I am pleased with the Small Business Administration's recognition of Mississippi for this new Small Business Investment Company (SBIC) license and look forward to the tremendous opportunities that could become available for economic growth in our great state," said Congressman Michael Guest.

What This Means for Mississippi, Oklahoma, Tennessee:
The approval of an SBIC means that Twain Private Credit can now leverage federal resources to dramatically amplify their investment capabilities. This approval allows the Truman Fund to access capital from SBA, which can then be loaned or invested in local businesses, providing them with the financial support needed to grow and thrive. This type of support is crucial for small businesses, which sometimes struggle to secure funding through traditional means.

The presence of an active SBIC in Mississippi means more opportunities for local entrepreneurs and small business owners to access the funding necessary to expand their operations, innovate new products, and hire more employees. Oklahoma and Tennessee will also benefit from having teams on-location in the states to deploy new capital for small businesses. It represents a significant boost to the local economy, with the ambition to create ripple effects of growth and prosperity throughout the region. The industry focus for the fund is diverse, including: logistics and distribution, manufacturing, energy, infrastructure, industrial equipment, and emerging technologies.

It also represents an opportunity for investors to access unique advantages as they put their money to work in the region's economy. Investors in the fund, such as banks and family offices, can enjoy the higher return on investment due to the low cost of capital, CRA consideration, non-dilutive capital, and privileges that non-SBIC hedge or private equity funds do not enjoy. Potential limited partners are being evaluated, and are encouraged to reach out, as Twain Private Credit seeks to raise a significant private fund to leverage with SBA resources.

About Twain Private Credit:

Twain Private Credit, a member of the Twain Capital ecosystem, provides flexible, cash flow-based financing solutions to lower middle market businesses in underserved communities in the Southern states through Twain Private Credit's inaugural SBIC Fund, Truman Fund I. The Twain Private Capital team brings over 120 years of experience across private equity, venture capital, banking, private credit and operations.

For more information, please contact:
Wade Smith
Principal, Twain Private Credit
601-749-1589
[email protected]

SOURCE Twain Private Credit