This final rule implements provisions of the Small Business Reauthorization Act of 1997, enacted on December 2, 1997, that affect the Small Business Investment Company (SBIC) program, including provisions affecting SBICs' minimum capital requirements, leverage eligibility, and the timing of tax distributions by SBICs that have issued Participating Securities. Other provisions of the final rule modify regulations governing the refinancing of real estate by SBICs, portfolio diversification requirements, takedowns of leverage, and in- kind distributions by Participating Securities issuers. A proposed regulation that would have prohibited political contributions by SBICs is not being finalized at this time.