Small business lenders can now use a different accounting method for their fees

The US Small Business Administration changed how some small business investment companies calculate their annual fees. This means certain lenders can now use an accrual accounting method for their fees, which could change how much they pay each year.

This rule change affects a specific type of private fund that invests in small businesses, known as Small Business Investment Companies (SBICs). By allowing them to use accrual accounting for their annual fees, it could make these funds more attractive to investors or change their operating costs. It's a small technical change that can shift the economics for these specialized lenders.