WASHINGTON — Today, the U.S. Small Business Administration (SBA) announced the publication of a final rule modernizing the Small Business Investment Company (SBIC) program to incentivize private capital investment in critical industries and reduce regulations to support the reindustrialization of America. The final rule will take effect February 2, 2026.
“Confidence in President Trump’s pro-growth, America First agenda is driving private capital into America’s small businesses at record levels – and the SBIC program is a critical part of that momentum,” said SBA Administrator Kelly Loeffler. “By modernizing decades-old regulations, this final rule strengthens our public-private partnership and ensures capital can flow more efficiently to qualified emerging growth companies ranging from startups to manufacturers who are powering innovation, strengthening critical supply chains, and securing America’s industrial future by building today.”
The SBIC program is a long-standing public-private partnership that accelerates private investment into businesses across the country. In FY2025, the program achieved record capital of $53 billion in combined private capital and SBA leverage. The final rule removes unnecessary regulatory barriers, improves efficiency, and ensures the program remains a strong tool for financing small businesses – particularly those operating in critical industries including manufacturing, food production, energy, and more.
As part of the final rule, the SBA will reduce barriers to SBIC investments aligned with industrial priorities outlined in Executive Orders 14241 and 14272, encouraging investments in small businesses engaged in advanced technologies and critical minerals. The SBA also clarified that certain technology investments may qualify for an additional exemption as part of the SBA’s Critical Technologies Initiative with the U.S. Department of War (DOW).
To further streamline the program, the SBA removed certain eligibility requirements for SBIC license applicants seeking access to the Expedited Subsequent Fund Evaluation Process, reducing complexity while maintaining robust review standards. The final rule also reduces regulatory burdens across the SBIC program by eliminating obsolete provisions, improving regulatory efficiency, and establishing clearer terms and conditions that help support SBIC investments.
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About the Small Business Investment Company Program
Since 1958, the mission of the Small Business Investment Company (SBIC) program has been to stimulate and supplement the flow of private equity capital and long-term debt financing that American small businesses need to operate, expand and modernize their businesses. SBA does this by licensing and providing capital to professionally managed equity and debt investment funds as Small Business Investment Companies. SBA capital comes in the form of, a government-guaranteed loan to the fund to match privately raised capital. The SBA-guaranteed loan, paired with private capital, increases access to financing for qualifying U.S. small businesses and startups while potentially improving risk-adjusted returns for private investors.
About the U.S. Small Business Administration
The U.S. Small Business Administration helps power the American dream of entrepreneurship. As the leading voice for small businesses within the federal government, the SBA empowers job creators with the resources and support they need to start, grow, and expand their businesses or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.