HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.
![handle is hein.congrecreports/crptxabeg0001 and id is 1 raw text is: AUTHENTICATEO
U.S. GOVERNMENT
INFORMATION
Op
115TH CONGRESS REPORT
2d Session HOUSE OF REPRESENTATIVES 115-646
SMALL BUSINESS CREDIT AVAILABILITY ACT
APRIL 24, 2018.-Committed to the Committee of the Whole House on the State of
the Union and ordered to be printed
Mr. HENSARLING, from the Committee on Financial Services,
submitted the following
REPORT
[To accompany H.R. 4267]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred the
bill (H.R. 4267) to amend the Investment Company Act of 1940 to
change certain requirements relating to the capital structure of
business development companies, to direct the Securities and Ex-
change Commission to revise certain rules relating to business de-
velopment companies, and for other purposes, having considered
the same, report favorably thereon without amendment and rec-
ommend that the bill do pass.
PURPOSE AND SUMMARY
On November 7, 2017, Representative Steve Stivers introduced
H.R. 4267, to amend the Investment Company Act of 1940 to mod-
ernize the regulatory regime for Business Development Companies
(BDCs). BDCs are investment vehicles designed to facilitate cap-
ital formation for small and middle-market companies. The legisla-
tion requires the SEC to streamline the offering, filing, and reg-
istration processes for BDCs to eliminate significant regulatory
burdens. This legislation also increases a BDCs' ability to deploy
capital to businesses by reducing the BDC's asset coverage ratio-
or required ratio of assets to debt-from 200% to 150% if certain
requirements are met.
BACKGROUND AND NEED FOR LEGISLATION
The goal of H.R. 4267 is to help fuel capital formation for small-
and middle-market businesses that have difficulty obtaining bank
and other traditional financing by providing BDCs some relief from
79-006](ViewImageLocal?handle=hein.congrecreports/crptxabeg0001&div=1&collection=&method=preview&ext=.png&size=3)