The Securities and Exchange Commission has announced that it is providing temporary and conditional relief for business-development companies (BDCs) allowing them to make additional investments in small- and medium-sized businesses, including those with operations affected by COVID-19.
The exemptive relief—announced on April 8—provides additional temporary flexibility for BDCs to issue and sell senior securities and participate in certain joint enterprises or other joint arrangements that would otherwise be prohibited. This temporary relief will be provided only from April 8, 2020 to December 31, 2020—or until the BDC decides to no longer rely on the Order (the “exemption period”).
The relief doesn’t apply to all closed-end investment companies but only to those investment companies that have elected to be regulated as BDCs.
Download the article to read about:
- BDCs issuing or selling senior securities
- Expansion of relief for BDCs with existing co-investment orders