BDC Executives Advocate for Bill that Infuses More Capital to U.S. Businesses
WASHINGTON, D.C. (March 1, 2016) – Today, the Small Business Investor Alliance (SBIA), the leading association of lower middle market private equity funds and investors, brought key decision makers from both Congress and the Administration to chart a path forward in an effort to pass major regulatory modernization for the Business Development Company (BDC) industry. The effort, which builds upon momentum the SBIA generated in 2015, is intended to help spur passage of the passage of H.R. 3868, a bill that would streamline the BDC offering process, updates proxy rules, and expands access to capital by changing the “asset coverage ratio.”
“We are very pleased to be bringing together such a diverse group of senior decision makers in both the Executive and Legislative Branches to forge ahead with common-sense measures that will better enable needed capital to flow to small and mid-sized companies,” said SBIA President, Brett Palmer. “BDCs have become an incredibly effective platform to drive both innovation and opportunity in our economy – for this reason we have generated considerable bipartisan support for modernizing the BDC process, something we plan to strengthen as we visit Congress today.”
Among those participating in the SBIA forum this morning, hosted by BDC industry leaders, was Congressman Patrick McHenry (R-NC), who serves as Vice Chairman of the House Committee on Financial Services and Member of the House Republican Leadership Team. Also participating in the forum is Don Graves, Deputy Assistant to the President and Counselor to Vice President Biden, who is expected to speak about the Obama Administration’s focus on middle market companies. After this morning’s Forum, SBIA members will be taking to Capitol Hill to meet with a broad cross section of Members of Congress to advocate for a House Floor Vote on the BDC modernization legislation, which passed the House Committee on Financial Services in November by a vote of 53-4.
BDCs are government-regulated investment companies created by Congress in 1980 to provide new and increased sources of capital for small and mid-sized American companies. There are over 80 active BDCs in the U.S. and this rapidly growing industry has already surpassed $70 billion. To read more about the SBIA’s BDC Modernization Agenda, please click here.