SEC Grants Temporary Relief to BDCs on Asset Coverage Rules

The Securities and Exchange Commission has provided temporary relief to business development companies that will allow them to make additional investments in small- and medium-sized businesses, according to a statement.

• The move will give BDCs additional flexibility to issue and sell senior securities in order to provide capital to borrowers, including those impacted by the spread of the coronavirus, and to participate in these investments alongside private funds affiliated with the BDCs, the statement said
• Under the order, BDCs can calculate asset coverage ratios -- which essentially cap debt to equity levels at 2:1 for most BDCs -- ...