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. Additional revisions are designed to change the terms for repayment of SBA Leverage, update the SBIC fee structures, facilitate investment by first-time SBIC sponsors and those in underserved communities, revise certain SBIC reporting and valuation standards, as well as to codify or clarify long-standing informal SBA practices and interpretations. The proposed regulations would make nearly three dozen revisions to 13 CFR §107 and §121, and taken together, represent the greatest change to the SBIC program in over a decade.