BGOV Bill Analysis: H.R. 2225, Business Development Companies

Registered investment companies could exclude fees resulting from investments in business development companies — which invest in small and midsize businesses — from their required fee disclosures under H.R. 2225.

Business development companies, which Congress created in 1980 to bolster the flow of capital to small businesses, must invest 70% of their assets in US companies with a market capitalization of less than $250 million. They’re also required to provide managerial assistance to companies they invest in.

The Securities and Exchange Commission currently requires registered investment firms to disclose their acquired fund fees and expenses, which include expenses ...