Twain Private Credit launches inaugural fund to support SMEs in Southern states
Twain Private Credit has launched its inaugural fund, following approval from the US Small Business Administration (SBA) for a Small Business Investment Company (SBIC) licence.
The firm said that the approval brings an active SBIC to Mississippi for the first time on record, unlocking capital for local businesses looking to grow and expand.
The new fund – dubbed the Truman Fund I – will provide flexible, cash flow-based financing solutions to lower middle market businesses in underserved communities in the Southern states.
The SBIC program is an initiative designed to provide long-term capital to small businesses across the US.
The SBA commits up to $5bn (£3.9bn) annually to provide low-cost loans to private equity and private credit funds focused on investing in US small businesses and startups.
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The Truman Fund is aiming 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 neighbouring states, such as Oklahoma, Arkansas, Alabama, and Georgia which do not have an actively investing SBIC.
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“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.”
Mississippi state governor Tate Reeves said: “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.”
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