House subcommittee holds hearing on BDC legislation

摘要

The US House Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises held a hearing this week to discuss draft legislation aimed at modernising regulatory oversight of the Business Development Company industry. The discussion draft, developed by Congressman Mick Mulvaney, marks an important step in renewed legislative efforts that would expand access to capital and allow BDC funds to use more leverage to invest in small and mid-sized private US companies. Raising the cap on leverage would enable BDCs to extend more loans to borrowers at potentially lower rates, effectively enhancing portfolio yields and shareholder returns.