The U.S. Small Business Administration (SBA) finalized wide-ranging revisions to the regulations governing the small business investment company (SBIC) program on Thursday, July 13, 2023. Among other things, the changes introduce a new type of Accrual Debenture, issued at face value that will accrue interest over a ten-year term and is designed to attract venture and growth equity investors as well as funds-of-funds into the SBIC program. Additional revisions aim to (i) modernize licensing and leverage commitment processes, (ii) update licensing fee structures, (iii) facilitate investment by first-time SBIC sponsors and those who invest in underserved communities, (iv) revise certain reporting and valuation standards, and (v) codify or clarify long-standing informal SBA practices and interpretations. The regulations make nearly three dozen revisions to 13 CFR §107 and §121, and taken together, represent the most significant regulatory changes to the SBIC program in a quarter of a century. The regulations will be effective August 17, 2023.