Abacus Finance Group has announced that it has gained permission for a US state-backed finance scheme and also that it has reached the first close of its inaugural fund.

Abacus provides cash flow-based senior debt to lower middle-market private equity-backed companies.

It has been granted a small business investment company (SBIC) licence. The Small Business Administration’s (SBA) SBIC program is a US federal initiative designed to stimulate capital investment in small businesses by providing access to government-guaranteed debt capital.

The newly licensed SBIC fund will allow Abacus to expand its capacity to serve a broader range of companies.

It said this would underscore its commitment to fuelling innovation, job creation, and sustainable development across the lower middle market.

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“Receiving our SBIC license and holding our first closing of this fund is a testament to both our total partnership approach and dedication to helping small businesses succeed,” said Tim Clifford, chief executive of Abacus Finance Group. “This partnership with the SBA equips us with even greater tools to fuel the growth and resilience of the businesses we serve.”

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Abacus Finance Group was co-founded in 2011 by Tim Clifford and its chief operations officer Sean McKeever.

Abacus targets private debt financing opportunities of up to $60m (£47.4m) and finances companies with EBITDA between $3m and $15m. It is an affiliate of New York Private Bank & Trust.

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