I am technically ignorant on this subject (reloading and ballistics etc) but from what I have gathered here and other places it would seem that something like a 6.5x40 kind of a thing would be what would work well in an SBR coupled with the right powder. Frankly an updated version of the very kind of thing that they hoped to accomplish with the .30 carbine...only updated with more modern concepts. Obviously others (practically everybody probably) knows this stuff better than I do. But I have heard so much negative about how the M4 performs with a round designed for a much longer barrel I have to wonder. So that is where I came up with 6.5x40. Big enough bullet to deal with the lowered velocity and the right sized case to minimize muzzle flash and report, which again, I understand are prominent with the M4 shooting 5.56x45.
Or how about this...do like the .357 sig only instead of necking down the .40 case, neck down the 10mm case! That would be something.