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This proposed rulemaking advances reforms based on comments received during and after the close of the comment period for the Direct Final Rulemaking that clarified and provided technical updates to the Small Business Investment Company Investment Diversification and Growth final rule implemented on August 17, 2023 (SBIC IDG Final Rule), which reduced barriers to program participation for new SBIC fund managers and funds investing in (i) underserved communities and geographies, (ii) capital intensive investments, and (iii) technologies critical to national security and economic development. While these comments were outside the scope of the Direct Final Rule, SBA seeks to address them by making reforms to enhance compatibility and alignment of SBIC program regulations with other Federal financial regulatory agencies and industry practices to reduce potential burdens on program applicants and participants.