The Small Business Administration is proposing changes to the Small Business Investment Company program that would diversify its network and introduce an alternative capital-raising structure to accommodate more types of investments.

SBA published the proposed SBIC Investment Diversification and Growth rule Wednesday in the Federal Register.

If approved, the reforms would open opportunities for new private funds and managers that provide longer-term debt and equity investments to marginalized startup companies and small businesses.

The rule is also intended to benefit capital-intensive industries and developers of critical national security technologies needing cash infusion.

SBA designed a substitute for the traditional Debenture SBIC borrowing structure to fit the cash flow patterns of the equity-oriented funds.

“SBA’s SBIC program has helped generations of entrepreneurs bridge capital gaps to build and scale resilient businesses. Despite the program’s impact, we still see underinvestment in communities across America, and the Biden-Harris Administration is committed to filling those capital gaps,” said Isabella Casillas Guzman, administrator of SBA.

“I look forward to working with our private investment partners and receiving important feedback to make this vital program even stronger.”

The investment diversification and growth proposal is open for public comment until Dec. 19.