Financing Allows Company to Make All-Natural Textiles from Mushroom Mycelium and Create New Jobs in Rural South Carolina

(UNION, SC and BRUNSWICK, ME – November 28, 2023) – CEI Capital Management LLC (CCML) has closed $10 million in New Markets Tax Credit capacity for MycoWorks to lease a 136,000 square foot manufacturing facility in Union, South Carolina, and customize it with equipment to produce its all-natural textile product. The new plant will create 354 new full-time jobs in the rural community.

Headquartered in California, MycoWorks is a bio-textile startup focused on creating sustainable textiles with biomaterials. Their signature products Reishi™ and Hyphae™, created via a proprietary Fine Mycelium™ manufacturing process, uses mushroom mycelium (the branching root-like structure of fungus) to create a plastic-free leather alternative for the luxury and elevated mass markets. After a decade of development, a successful trial at a pilot plant in California, and interest from brands like Hermès and General Motors, MycoWorks is ready to scale. The $10 million New Markets Tax Credit (NMTC) financing allowed the company to close on the new production facility.

Union has a long history in the textile industry and today its largest industries are manufacturing, distribution, and automotive. This project aligns with local economic development strategies earning the company a letter of support from the Union County Development Board, and the state’s executive leadership.

South Carolina Governor Henry McMaster said, “We are thrilled to welcome MycoWorks to Union. We are already seeing the growth that this opening is bringing to the immediate and greater communities in the area, including more jobs, housing, storefronts, and overall investments. MycoWorks is a fantastic addition to our portfolio of energy-efficient plants, and we look forward to their long-term impact in South Carolina.”

Starting wages at the Union plant exceed the MIT Living Wage for a single adult by 21%, and all positions come with a robust benefits package. The bulk of the jobs at the facility (86%), will be accessible to those with a High School Diploma or less. In addition to robust new hire training, MycoWorks is hiring 24 trainers across the organization to provide employees with ongoing support and to enable incumbent workers to upskill, positioning them for new, higher-paying jobs. These policies and programs help the company meet the elements of the CEI Good Jobs Framework.

“In addition to being an exciting, innovative company, MycoWorks recognizes the advantages to creating and maintaining Good Jobs across the enterprise,” said CCML CEO Traci Vaine. “This investment allows them to enter a new community with the infrastructure in place to scale up manufacturing quickly, while assuring high standards for job quality right out of the gate.”

CCML invests in rural manufacturing projects that revitalize core industries or support emerging sectors. The investment in MycoWorks aligns with CCML’s focus to bring critically needed private investment to deeply distressed rural areas, where access to capital is limited or non-existent.

U.S. Bancorp Impact Finance provided the New Markets Tax Credit equity and CCML was joined by co-allocatees AMCREF and Hampton Roads Ventures. Hope Community Capital served as investment consultant to CCML.

About CEI Capital Management

CEI Capital Management LLC works nationally to connect new and existing rural manufacturing companies with flexible capital through the federal New Markets Tax Credit and Maine New Markets Capital Investment Tax Credit programs. CEI Capital Management invests in companies committed to building accessible good jobs that provide living wages, comprehensive benefits and opportunities for training and advancement in alignment with CEI’s Good Jobs Framework. Since 2004, CEI Capital Management has placed over $1.02 billion in 99 different projects across the U.S.

CEI Capital Management LLC is a wholly owned subsidiary of Coastal Enterprises, Inc. (CEI), a Maine-based nonprofit Community Development Financial Institution.

CEI Capital Management LLC is an equal opportunity provider.