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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.