WASHINGTON, DC – PA U.S. Sen. Dave McCormick and Maryland U.S. Sen. Angela Alsobrooks have introduced bipartisan legislation which would support small and middle-market businesses by making it easier for business development companies to attract capital. McCormick says small businesses are the engine that powers a growing economy and creates good-paying jobs. The legislation will eliminate red tape and make it more attractive for investors to put capital into job-creators. It would remove the requirement that investment funds acquiring a stake in business development companies or BDCs include its fees and expenses in the acquiring fund’s expense ratio. Eliminating the requirement will ensure that investors receive an accurate picture of a fund’s true costs and eliminate an impediment for institutional investors to provide capital to BDCs that, in turn, will be used to support small and middle-market business. Currently, there are more than 130 BDCs that have made over $300 billion of investments in middle-market companies across the United States.
SEN. ANGELA ALSOBROOKS
SEN. DAVID MCCORMICK