Pending Legislation Would Ease Leverage Limits and Improve the Securities Offering Process for Business Development Companies

Pending Legislation Would Ease Leverage Limits and Improve the Securities Offering Process for Business Development Companies


By: Stuart Gelfond, Joshua Wechsler, Jessica Forbes, Dave Rao, Justin Sedor

On January 18, 2018, Senators Heller and Manchin introduced the Small Business Credit Availability Act in the U.S. Senate, a bipartisan bill that would loosen current restrictions on the capital structure of business development companies (BDCs) and improve the securities offering process for BDCs under the Securities Act of 1933. BDCs are significant financing sources for small and middle market companies, and their significance has been increasing in recent periods.

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