- Trinity Capital Inc. (TRIN, Financial) receives conditional approval from the SBA for an SBIC license application.
- The approval could allow TRIN to access up to $175 million in SBA-guaranteed debentures.
- Trinity Capital has a proven track record, having previously deployed $734 million through SBIC funds.
Trinity Capital Inc. (NASDAQ: TRIN) has announced receiving a conditional approval from the U.S. Small Business Administration (SBA) to submit a formal application for a Small Business Investment Company (SBIC) license. This significant milestone could potentially provide the firm access to up to $175 million in SBA-guaranteed debentures, expanding its third-party capital management capabilities through its Registered Investment Advisor subsidiary.
Historically, Trinity Capital's predecessor entities have successfully deployed $734 million via two prior SBIC funds, illustrating the firm's experience and success in managing such investments. The strategic opportunity aligns with Trinity's objective of scaling its investment platform without diluting shareholder equity, as the SBIC program offers attractive long-term, fixed-rate debt options exempt from regulatory asset coverage requirements.
The SBA's Green Light letter, while a positive development, is not a guarantee of final approval. The company must complete the formal application process, and the timing or assurance of license issuance remains uncertain. Nonetheless, the experience and preliminary approval secured by Trinity make the prospect of obtaining an SBIC license favorable.
Trinity Capital, headquartered in Phoenix, Arizona, operates as an international alternative asset manager. The company structures investments across five distinct lending verticals, aiming to deliver consistent returns for investors in the private credit markets.
