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
wade@twaincap.com
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SOURCE Twain Private Credit