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SBA RIN: 3245-AG68 Publication ID: Fall 2016 
Title: Small Business Investment Companies (SBIC); Early Stage Initiative 

The Early Stage Small Business Investment Company (SBIC) initiative was launched in 2012 as part of President Obama’s Start-up America Initiative. The intent of SBA’s Early Stage initiative was to license and provide SBA guaranteed leverage to Early Stage SBICs over a 5-year period ending in September 2016 that would focus on making investments in early stage small businesses. Since the program began, SBA has licensed several Early Stage SBICs. SBA sought input from the public through an Advanced Notice of Proposed Rule Making (ANPRM) in March 2015 to determine whether existing market conditions warrant SBA continuing to license Early Stage SBICs past September 2016 on an ongoing basis and, if so, what changes should be made to the program to attract qualified early stage fund managers. The proposed rule would implement changes based on responses from the ANPRM and additional input received by SBA, including removing the limitation on once-annual application period for Early Stage SBIC applicants, allowing existing Early Stage SBICs to apply for a subsequent license, allowing Early Stage SBICs to access a third party line of credit to help bridge the gap between financings and private capital calls, and increase the maximum amount of SBA guaranteed leverage available to an Early Stage SBIC with sufficient Regulatory Capital to $75 million.

Agency: Small Business Administration(SBA)  Priority: Other Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: No  Unfunded Mandates: No 
CFR Citation: 13 CFR 107   
Legal Authority: 15 U.S.C. 681    15 U.S.C. 683   
Legal Deadline:  None
Action Date FR Cite
ANPRM  03/18/2015  80 FR 14034   
ANPRM Comment Period End  05/18/2015 
NPRM  09/19/2016  81 FR 64075   
Proposed Rule; Notice of Public Webinar  10/05/2016  81 FR 69012   
NPRM Comment Period End  10/19/2016 
Proposed Rule; Notice of Public Webinar Comment Period End  10/19/2016 
Final Rule  04/00/2017 
Additional Information: Included in SBA's Retrospective Review under Executive Orders 13563 and 13610.
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Small Entities Affected: No  Federalism: No 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: No 
Agency Contact:
Theresa M. Jamerson
Senior Risk and Investment Policy Advisor, Office of Investment and Innovation
Small Business Administration
409 Third Street SW,
Washington, DC 20461
Phone:202 205-7563