Vincent Foster

Allowing the option for a modest increase in this leverage to 2:1 would enable BDCs to deploy significantly more capital to small and mid-size businesses. Simultaneously, BDCs will be able to reduce the risk in their portfolios, as they can invest in lower yielding, lower risk investments and still generate valuable returns and dividends to their shareholders.

We believe the provisions in the legislation add new safeguards for BDC investors and ensure that investors will be sufficiently informed about leverage levels BDCs are taking on.