In the evolving landscape of small business funding in the U.S., private credit is gaining prominence as an alternative to traditional options like investors or bank loans. Over the past decade, the private credit sector has surged from $400 billion to $1 trillion in assets. Private credit involves non-bank institutions providing loans to businesses, often catering to those unable to secure loans from traditional banks. Despite its long history, it has recently garnered increased attention, with major private equity firms expanding their operations in this space. Small business owners cite positive impacts on employees and operations, emphasizing access to expertise for scaling and navigating challenges. In 2022 alone, private credit supported an estimated 1.6 million jobs, contributing significantly to wages, benefits, and GDP. Critics calling for increased regulation overlook key distinctions between private credit and traditional bank loans.