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SBA Announces Proposed Reforms to SBIC Program – New Accrual SBIC for Growth Equity Funds
Hogan Lovells – The U.S. Small Business Administration (SBA) proposed wide-ranging revisions to the regulations governing the small business investment company (SBIC) program on Tuesday, October 18, 2022. Among other things, the proposed changes would introduce a new type of Accrual Debenture, issued at face value that would accrue interest over the entire ten-year term of the SBIC (and in some cases longer) and designed to attract venture and growth equity investors into the program.