ABOUT BDCs
Created in 1980 with overwhelming bipartisan Congressional support, Business Development Companies (BDCs) are a job-creating engine that provides access to capital for American small- and medium-sized businesses. BDCs invest in and provide management expertise to these companies to help them grow. BDCs invest at least 70% of their total assets in “eligible portfolio companies,” which are generally defined as public and private U.S. operating companies valued at under $250 million.
In addition to providing access to capital for small and middle market companies, BDCs also allow individual investors access to highly-regulated investment opportunities that were once available to only wealthy individuals and institutional investors.
SBIA in Action
The Small Business Investor Alliance is the leading trade association representing business development companies (BDCs), their investors, and their portfolio companies. The SBIA regularly engages with Republican and Democratic members of Congress, regulatory agencies including the Securities and Exchange Commission (SEC), and outside stakeholders to promote the role of BDCs in small business capital formation and the financing of middle market businesses throughout the United States.
In 2021 alone, SBIA conducted more than 120 meetings with regulators and Congressional offices to educate policymakers on BDC priorities; and pursued exemptions from the SEC for BDC co-investment transactions, which resulted in relief until March 2022. SBIA is working to make the exemptions permanent, and seeking to mitigate recent SEC proposals impacting private funds. SBIA has worked with key Congressional offices to reintroduce bipartisan House legislation that would make changes to AFFE and is working to secure Senate sponsorship of similar legislation. SBIA is also continuing advocacy efforts to reinstate the EBITDA standard for interest deductibility.
SBIA is recognized as the “go-to” resource for Congress and regulators on all issues pertaining to BDCs and their investors. We continue to work proactively in Washington DC to ensure that BDCs maintain their critical role in financing and growing the Main Street economy.
See how business development companies are making an impact in your state.
There are currently 126 BDCs and the industry continues to grow.
- 57 are publicly traded BDCs.
- BDCs represent over $180 billion in AUM (assets under management) investing in small- and medium-sized businesses across the country.