,,ib  ,union ,cal5d> ,no4 #chh  #aad?   
,,congress  #b;d ,session  ,h4 ,r4 #chfh
  ,report ,no4 #aad-ejh  ,,9 ,,! ,,h\se 
,,( ,,repres5tatives  ,novemb] #b1 #bjae
 ,mr4 ,mulvaney introduc$ ! foll[+ bill2
 :i* 0 ref]r$ to ! ,committee on        
,f9ancial ,s]vices  ,april #ai1 #bjaf   
,additional sponsors3 ,mr4 ,/iv]s1 ,mr4 
,%]man1 ,mr4 ,s*weik]t1 ,mr4 ,pitt5g]1  
,mr4 ,kildee1 & ,mr4 ,dold  ,april #ai1 
#bjaf ,report$ ) an am5dm5t1 committ$ to
 ! ,committee ( ! ,:ole ,h\se on ! ,/ate
 ( ! ,union1 & ord]$ to be pr9t$ ,/rike 
out all aft] ! enact+ clause & ins]t !  
"p pr9t$ 9 italic ,= text ( introduc$   
bill1 see copy ( bill z introduc$ on    
,novemb] #b1 #bjae  ,a ,,bill  ,to am5d 
! ,inve/m5t ,company ,act ( #aidj to    
remove c]ta9 re/rictions on ! ability ( 
bus9ess developm5t companies to own     
securities ( inve/m5t advis]s & c]ta9   
f9ancial companies1 to *ange c]ta9      
requirem5ts relat+ to ! capital /ructure
 ( bus9ess developm5t companies1 to     
direct ! ,securities & ,ex*ange         

,commission to revise c]ta9 rules relat+
 to bus9ess developm5t companies1 & =   
o!r purposes4  #a4 ,%ort title ,?is ,act
 may be cit$ z ! ,small ,bus9ess ,cr$it 
,availability ,act4  #b4 ,bus9ess       
developm5t company own]%ip ( securities 
( inve/m5t advis]s & c]ta9 f9ancial     
companies  7a7 ,9 g5]al  7#a7 ,9 g5]al  
,n lat] ?an #a ye> aft] ! date (        
enactm5t ( ?is ,act1 ! ,securities &    
,ex*ange ,commission %all promulgate    
regulations to codify ! ord] 9 ,inve/m5t
 ,company ,act ,release ,no4 #cjjbd1    
dat$ ,m>* #cj1 #bjab4 ,if ! ,commission 
fails to complete ! regulations z       
requir$ by ?is subsection1 a bus9ess    
developm5t company %all be entitl$ to   
treat su* regulations z hav+ be5        
complet$ 9 accordance ) ! actions       
requir$ to be tak5 by ! ,commission     
until su* "t z su* regulations are      
complet$ by ! ,commission4  7#b7 ,rule (
 con/ruction ,no?+ 9 ?is subsection %all
 prev5t ! ,commission f issu+ rules to  
address pot5tial conflicts ( int]e/     

betwe5 bus9ess developm5t companies &   
inve/m5t advis]s4  7b7 ,p]missible      
assets ( an eligible portfolio company  
,section #ee ( ! ,inve/m5t ,company ,act
 ( #aidj 7#ae ,u4,s4,c4 #hj;a-#ed7 is   
am5d$ by add+ at ! end ! foll[+3  7c7   
,securities deem$ ,to be p]missible     
assets ,not)/&+ subsection 7a71         
securities t w\ld be describ$ 9         
p>agraphs 7#a7 ?r\gh 7#f7 ( su*         
subsection except t ! issu] is a company
 describ$ 9 p>agraph 7#b71 7#c71 7#d71  
7#e71 7#f71 or 7#i7 ( section #c7;c7 may
 be deem$ to be assets describ$ 9       
p>agraphs 7#a7 ?r\gh 7#f7 ( subsection  
7a7 to ! ext5t necess>y = ! sum ( !     
assets to equal #gj p]c5t ( ! value ( a 
bus9ess developm5t company's total      
assets 7o!r ?an assets describ$ 9       
p>agraph 7#g7 ( subsection 7a771 provid$
 t ! aggregate value ( su* securities   
c\nt+ t[>d su* #gj p]c5t %all n exce$   
#bj p]c5t ( ! value ( ! bus9ess         
developm5t company's total assets4  4   
#c4 ,exp&+ access to capital = bus9ess  

developm5t companies  7a7 ,9 g5]al      
,section #fa7;a7 ( ! ,inve/m5t ,company 
,act ( #aidj 7#ae ,u4,s4,c4             
#hj;a-#fj7;a77 is am5d$--  7#a7 by      
r$esignat+ p>agraphs 7#b7 ?r\gh 7#d7 z  
p>agraphs 7#c7 ?r\gh 7#e71 respectively2
  7#b7 by /rik+ p>agraph 7#a7 & ins]t+ !
 foll[+3  7#a7 ,except z provid$ 9      
p>agraph 7#b71 ! asset cov]age          
requirem5ts ( subp>agraphs 7,a7 & 7,b7 (
 section #ah7;a77#a7 7& any relat$ rule 
promulgat$ "u ?is ,act7 applicable to   
bus9ess developm5t companies %all be    
#bjj p]c5t4  7#b7 ,! asset cov]age      
requirem5ts ( subp>agraphs 7,a7 & 7,b7 (
 section #ah7;a77#a7 & ( subp>agraphs   
7,a7 & 7,b7 ( section #ah7;a77#b7 7& any
 relat$ rule promulgat$ "u ?is ,act7    
applicable to a bus9ess developm5t      
company %all be #aej p]c5t if--  7,a7 )9
 five bus9ess days ( ! approval ( !     
adoption ( ! asset cov]age requirem5ts  
describ$ 9 clause 7ii71 ! bus9ess       
developm5t company discloses su*        
approval & ! date ( its effectiv5ess 9 a

 ,=m #h-,k fil$ ) ! ,commission & 9 a   
notice on its website & discloses 9 its 
p]iodic fil+s made "u section #ac ( !   
,securities ,ex*ange ,act ( #aicd 7#ae  
,u4,s4,c4 #ghm7-- 7i7 ! aggregate value 
( ! s5ior securities issu$ by su*       
company & ! asset cov]age p]c5tage z ( !
 date ( su* company's mo/ rec5t f9ancial
 /atem5ts2 &  7ii7 t su* company has    
adopt$ ! asset cov]age requirem5ts ( ?is
 subp>agraph & ! effective date ( su*   
requirem5ts2  7,b7 ) respect to a       
bus9ess developm5t company t issues     
equity securities t are regi/]$ on a    
national securities ex*ange1 ! p]iodic  
fil+s ( ! company "u section #ac7;a7 ( !
 ,securities ,ex*ange ,act ( #aicd 7#ae 
,u4,s4,c4 #ghm7 include disclosures     
reasonably design$ to ensure t %>ehold]s
 are in=m$ (--  7i7 ! am\nt (           
indebt$ness & asset cov]age ratio ( !   
company1 det]m9$ z ( ! date ( ! f9ancial
 /atem5ts ( ! company dat$ on or mo/    
rec5tly be=e ! date ( su* fil+2 &  7ii7 
! pr9cipal risk factors associat$ ) su* 

indebt$ness1 to ! ext5t su* risk is     
incurr$ by ! company2 &  7,c7  7i7 !    
application ( ?is p>agraph to ! company 
is approv$ by ! requir$ majority 7z     
def9$ 9 section #eg7o77 ( ! directors ( 
or g5]al p>tn]s ( su* company :o are n  
int]e/$ p]sons ( ! bus9ess developm5t   
company1 :i* application %all become    
effective on ! date t is #a ye> aft] !  
date ( ! approval1 &1 ) respect to a    
bus9ess developm5t company t issues     
equity securities t are n regi/]$ on a  
national securities ex*ange1 ! company  
ext5ds1 to ea* p]son :o is a %>ehold] z 
( ! date ( ! approval1 an (f] to        
repur*ase ! equity securities held by   
su* p]son z ( su* approval date1 ) #be  
p]c5t ( su* securities to be repur*as$ 9
 ea* ( ! f\r qu>t]s foll[+ su* approval 
date2 or  7ii7 ! company obta9s1 at a   
special or annual meet+ ( %>ehold]s or  
p>tn]s at :i* a quorum is pres5t1 !     
approval ( m ?an #ej p]c5t ( ! votes ca/
 ( ! application ( ?is p>agraph to !    
company1 :i* application %all become    

effective on ! date imm$iately aft] !   
date ( ! approval4  2  7#c7 9 p>agraph  
7#c7 7z r$esignat$71 by ins]t+ or :i* is
 a /ock1 provid$ t all su* /ock is issu$
 9 accordance ) p>agraph 7#f7 aft]      
indebt$ness2  7#d7 9 subp>agraph 7,a7 ( 
p>agraph 7#d7 7z r$esignat$7--  7,a7 9 !
 matt] prec$+ clause 7i71 by /rik+ vot+2
 &  7,b7 by am5d+ clause 7iii7 to read z
 foll[s3  7iii7 ! ex]cise or conv]sion  
price at ! date ( issuance ( su*        
w>rants1 options1 or rights is n less   
?an-- 7,i7 ! m>ket value ( ! securities 
issuable ^u ! ex]cise ( su* w>rants1    
options1 or rights at ! date ( issuance 
( su* w>rants1 options1 or rights2 or   
7,,ii7 if no su* m>ket value exi/s1 !   
net asset value ( ! securities issuable 
^u ! ex]cise ( su* w>rants1 options1 or 
rights at ! date ( issuance ( su*       
w>rants1 options1 or rights2 &  2 &     
7#e7 by add+ at ! end ! foll[+3  7#f7   
7,a7 ,qualifi$ in/itutional buy] ,except
 z provid$ 9 subp>agraph 7,b71 ! foll[+ 
%all n apply to a s5ior security :i* is 

a /ock & :i* is issu$ to & held by a    
qualifi$ in/itutional buy] 7z def9$ 9   
section #c7;a77#fd7 ( ! ,securities     
,ex*ange ,act ( #aicd73 7i7             
,subp>agraphs 7,c7 & 7,d7 ( section     
#ah7;a77#b74  7ii7 ,subp>agraph 7,e7 (  
section #ah7;a77#b71 to ! ext5t su*     
subp>agraph requires any priority ov]   
any o!r class ( /ock z to di/ribution ( 
assets ^u liquidation4  7iii7 ,) respect
 to a s5ior security :i* is a /ock1     
subsections 7c7 & 7i7 ( section #ah4    
7,b7 ,individual inve/ors :o are n      
qualifi$ in/itutional buy]s ,subp>agraph
 7,a7 %all n apply ) respect to a s5ior 
security :i* is a /ock & :i* is issu$ to
 a p]son :o is n kn[n by ! bus9ess      
developm5t company to be a qualifi$     
in/itutional buy] 7z def9$ 9 section    
#c7;a7 ( ! ,securities ,ex*ange ,act (  
#aicd74  7#g7 ,rule ( con/ruction       
,not)/&+ any o!r provision ( law1 any   
additional class ( /ock issu$ pursuant  
to ?is section mu/ be issu$ 9 accordance
 ) all inve/or protections conta9$ 9 all

 applicable f$]al securities laws       
adm9i/]$ by ! ,commission4  4  7b7      
,con=m+ am5dm5ts ,! ,inve/m5t ,company  
,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#a et 
seq47 is am5d$-- 7#a7 9 section #eg--   
7,a7 9 subsection 7j77#a71 by /rik+     
section #fa7;a77#c77;,b7 & ins]t+       
section #fa7;a77#d77;,b72 &  7,b7 9     
subsection 7n77#b71 by /rik+ section    
#fa7;a77#c77;,b7 & ins]t+ section       
#fa7;a77#d77;,b72 &  7#b7 9 section     
#fc7c71 by /rik+ section #fa7;a77#c7 &  
ins]t+ section #fa7;a77#d74  #d4 ,p>ity 
= bus9ess developm5t companies reg>d+   
(f]+ & proxy rules  7a7 ,revision to    
rules ,n lat] ?an #a ye> aft] ! date (  
enactm5t ( ?is ,act1 ! ,securities &    
,ex*ange ,commission %all revise any    
rules to ! ext5t necess>y to all[ a     
bus9ess developm5t company t has fil$ an
 election pursuant to section #ed ( !   
,inve/m5t ,company ,act ( #aidj 7#ae    
,u4,s4,c4 #hj;a-#ec7 to use ! securities
 (f]+ & proxy rules t are available to  
o!r issu]s t are requir$ to file reports

 "u section #ac or section #ae7;d7 ( !  
,securities ,ex*ange ,act ( #aicd 7#ae  
,u4,s4,c4 #ghm2 #gho7d774 ,any action t 
! ,commission takes pursuant to ?is     
subsection %all include ! foll[+3  7#a7 
,! ,commission %all revise rule #dje "u 
! ,securities ,act ( #aicc 7#ag         
,c4,f4,r4 #bcj4dje7-- 7,a7 to remove !  
exclusion ( a bus9ess developm5t company
 f ! def9ition ( a well-kn[n season$    
issu] provid$ by t rule2 &  7,b7 to add 
regi/ration /atem5ts fil$ on ,=m ,n-#b  
to ! def9ition ( automatic %elf         
regi/ration /atem5t provid$ by t rule4  
7#b7 ,! ,commission %all revise rules   
#afh & #afi "u ! ,securities ,act (     
#aicc 7#ag ,c4,f4,r4 #bcj4afh &         
#bcj4afi7 to remove ! exclusion ( a     
bus9ess developm5t company f an issu] t 
c use ! exemptions provid$ by ^? rules4 
7#c7 ,! ,commission %all revise rules   
#afc & #afc;,a "u ! ,securities ,act (  
#aicc 7#ag ,c4,f4,r4 #bcj4afc &         
#bcj4afc;,a7 to remove a bus9ess        
developm5t company f ! li/ ( issu]s t   

are ineligible to use ! exemptions      
provid$ by ^? rules4  7#d7 ,!           
,commission %all revise rule #acd "u !  
,securities ,act ( #aicc 7#ag ,c4,f4,r4 
#bcj4acd7 to remove ! exclusion ( a     
bus9ess developm5t company f t rule4    
7#e7 ,! ,commission %all revise rules   
#ach & #aci "u ! ,securities ,act (     
#aicc 7#ag ,c4,f4,r4 #bcj4ach &         
#bcj4aci7 to specifically include a     
bus9ess developm5t company z an issu] to
 :i* ^? rules apply4  7#f7 ,!           
,commission %all revise rule #afd "u !  
,securities ,act ( #aicc 7#ag ,c4,f4,r4 
#bcj4afd7 to remove a bus9ess developm5t
 company f ! li/ ( issu]s t are exclud$ 
f t rule4  7#g7 ,! ,commission %all     
revise rule #dcc "u ! ,securities ,act (
 #aicc 7#ag ,c4,f4,r4 #bcj4dcc7 to      
specifically include a bus9ess          
developm5t company t is a well-kn[n     
season$ issu] z an issu] to :i* t rule  
applies4  7#h7 ,! ,commission %all      
revise rule #dae "u ! ,securities ,act (
 #aicc 7#ag ,c4,f4,r4 #bcj4dae7--  7,a7 

to /ate t ! regi/ration = securities    
provid$ by t rule includes securities   
regi/]$ by a bus9ess developm5t company 
on ,=m ,n-#b2 &  7,b7 to provide an     
exception = a bus9ess developm5t company
 f ! requirem5t t a ,=m ,n-#b regi/rant 
mu/ furni% ! und]tak+s requir$ by item  
#cd4d ( ,=m ,n-#b4  7#i7 ,! ,commission 
%all revise rule #dig "u ! ,securities  
,act ( #aicc 7#ag ,c4,f4,r4 #bcj4dig7 to
 include a process = a bus9ess          
developm5t company to file a =m (       
prospectus t is p>allel to ! process =  
fil+ a =m ( prospectus "u rule #dbd7;b74
  7#aj7 ,! ,commission %all revise rules
 #agb & #agc "u ! ,securities ,act (    
#aicc 7#ag ,c4,f4,r4 #bcj4agb &         
#bcj4agc7 to remove ! exclusion ( an    
(f]+ ( a bus9ess developm5t company f ^?
 rules4  7#aa7 ,! ,commission %all      
revise rule #dah "u ! ,securities ,act (
 #aicc 7#ag ,c4,f4,r4 #bcj4dah7 to      
provide t a bus9ess developm5t company t
 w\ld o!rwise meet ! eligibility        
requirem5ts ( ,g5]al ,in/ruction ,i4,a (

 ,=m ,s-#c %all be exempt f p>agraph    
7a77#c7 ( t rule4  7#ab7 ,! ,commission 
%all revise rule #ad;a-#aja "u !        
,securities ,ex*ange ,act ( #aicd 7#ag  
,c4,f4,r4 #bdj4ad;a-#aja7 to provide t a
 bus9ess developm5t company t w\ld      
o!rwise meet ! requirem5ts ( ,g5]al     
,in/ruction ,i4,a ( ,=m ,s-#c %all be   
deem$ to meet ! requirem5ts ( ,=m ,s-#c 
= purposes ( ,s*$ule #ad;,a4  7#ac7 ,!  
,commission %all revise rule #ajc "u    
,regulation ,,fd 7#ag ,c4,f4,r4         
#bdc4ajc7 to provide t p>agraph 7a7 ( t 
rule applies = purposes ( ,=m ,n-#b4    
7b7 ,revision to =m ,n-#b ,n lat] ?an #a
 ye> aft] ! date ( enactm5t ( ?is ,act1 
! ,commission %all revise ,=m ,n-#b--   
7#a7 to include an item or in/ruction t 
is simil> to item #ab on ,=m ,s-#c to   
provide t a bus9ess developm5t company t
 w\ld o!rwise meet ! requirem5ts ( ,=m  
,s-#c %all incorporate by ref]5ce its   
reports & docum5ts fil$ "u ! ,securities
 ,ex*ange ,act ( #aicd into its         
regi/ration /atem5t fil$ on ,=m ,n-#b2 &

  7#b7 to include an item or in/ruction 
t is simil> to ! in/ruction reg>d+      
automatic %elf (f]+s by well-kn[n       
season$ issu]s on ,=m ,s-#c to provide t
 a bus9ess developm5t company t is a    
well-kn[n season$ issu] may file        
automatic %elf (f]+s on ,=m ,n-#b4  7c7 
,treatm5t if revisions n complet$ 9     
timely mann] ,if ! ,commission fails to 
complete ! revisions requir$ by         
subsections 7a7 & 7b7 by ! "t requir$ by
 su* subsections1 a bus9ess developm5t  
company %all be entitl$ to treat su*    
revisions z hav+ be5 complet$ 9         
accordance ) ! actions requir$ to be    
tak5 by ! ,commission by su* subsections
 until su* "t z su* revisions are       
complet$ by ! ,commission4  7d7 ,rule ( 
con/ruction ,any ref]5ce 9 ?is section  
to a rule or =m means su* rule or =m or 
any successor rule or =m4  ,april #ai1  
#bjaf ,report$ ) an am5dm5t1 committ$ to
 ! ,committee ( ! ,:ole ,h\se on ! ,/ate
 ( ! ,union1 & ord]$ to be pr9t$