,,ib ,union ,calendar ,no4 #die #aaeth ,,congress #b;d ,session ,h4 ,r4 #dbfg ,report ,no4 #aae-fdf ,,in ,,the ,,house ,,of ,,representatives ,november #g1 #bjag ,mr4 ,stivers 7for himself1 ,mr4 ,sherman1 ,mr4 ,mc,henry1 and ,ms4 ,moore7 introduced the following bill2 which was referred to the ,committee on ,financial ,services ,april #bd1 #bjah;,additional sponsors3 ,mr4 ,royce of ,california1 ,mr4 ,himes1 ,mrs4 ,beatty1 ,mrs4 ,wagner1 ,mr4 ,perlmutter1 ,mr4 ,david ,scott of ,georgia1 ,ms4 ,tenney1 ,mr4 ,williams1 ,mr4 ,gottheimer1 ,mr4 ,messer1 ,mr4 ,meeks1 ,mr4 ,emmer1 ,mr4 ,budd1 ,mr4 ,clay1 ,mr4 ,hultgren1 ,mr4 ,foster1 ,mr4 ,graves of ,georgia1 ,mr4 ,fitzpatrick1 and ,mr4 ,heck ,april #bd1 #bjah ,committed to the ,committee of the ,whole ,house on the ,state of the ,union and ordered to be printed ,a ,,bill ,to amend the ,investment ,company ,act of #aidj to change certain requirements relating to the capital structure of business development companies1 to direct the ,securities and ,exchange ,commission to revise certain rules relating to business development companies1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,small ,business ,credit ,availability ,act4 #b4 ,expanding access to capital for business development companies 7a7 ,in general ,section #fa7;a7 of the ,investment ,company ,act of #aidj 7#ae ,u4,s4,c4 #hj;a-#fj7;a77 is amended-- 7#a7 by redesignating paragraphs 7#b7 through 7#d7 as paragraphs 7#c7 through 7#e71 respectively2 and 7#b7 by striking paragraph 7#a7 and inserting the following3 7#a7 ,except as provided in paragraph 7#b71 the asset coverage requirements of subparagraphs 7,a7 and 7,b7 of section #ah7;a77#a7 7and any related rule promulgated under this ,act7 applicable to business development companies shall be #bjj percent4 7#b7 ,the asset coverage requirements of subparagraphs 7,a7 and 7,b7 of section #ah7;a77#a7 and of subparagraphs 7,a7 and 7,b7 of section #ah7;a77#b7 7and any related rule promulgated under this ,act7 applicable to a business development company shall be #aej percent if-- 7,a7 within five business days of the approval of the adoption of the asset coverage requirements described in clause 7ii71 the business development company discloses such approval and the date of its effectiveness in a ,form #h-,k filed with the ,commission and in a notice on its website and discloses in its periodic filings made under section #ac7;a7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #ghm7a77-- 7i7 the aggregate value of the senior securities issued by such company and the asset coverage percentage as of the date of such company's most recent financial statements2 and 7ii7 that such company has adopted the asset coverage requirements of this paragraph and the effective date of such requirements2 7,b7 with respect to a business development company that issues equity securities that are registered on a national securities exchange1 the periodic filings of the company under section #ac7;a7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #ghm7a77 include disclosures reasonably designed to ensure that shareholders are informed of-- 7i7 the amount of indebtedness and asset coverage ratio of the company1 determined as of the date of the financial statements of the company dated on or most recently before the date of such filing2 and 7ii7 the principal risk factors associated with such indebtedness1 to the extent such risk is incurred by the company2 and 7,c7 7i7 the application of this paragraph to the company is approved by the required majority 7as defined in section #eg7o77 of the directors of or general partners of such company who are not interested persons of the business development company1 which application shall become effective on the date that is #a year after the date of the approval1 and1 with respect to a business development company that issues equity securities that are not registered on a national securities exchange1 the company extends1 to each person who is a shareholder as of the date of the approval1 an offer to repurchase the equity securities held by such person as of such approval date1 with #be percent of such securities to be repurchased in each of the four quarters following such approval date2 or 7ii7 the company obtains1 at a special or annual meeting of shareholders or partners at which a quorum is present1 the approval of more than #ej percent of the votes cast of the application of this paragraph to the company1 which application shall become effective on the date immediately after the date of the approval4 4 7b7 ,conforming amendments 7#a7 ,investment ,company ,act of #aidj ,the ,investment ,company ,act of #aidj 7#ae ,u4,s4,c4 #hj;a-#a et seq47 is amended-- 7,a7 in section #eg-- 7i7 in subsection 7j77#a71 by striking section #fa7;a77#c77;,b7 and inserting section #fa7;a77#d77;,b72 and 7ii7 in subsection 7n77#b71 by striking section #fa7;a77#c77;,b7 and inserting section #fa7;a77#d77;,b72 and 7,b7 in section #fc7c71 by striking section #fa7;a77#c7 and inserting section #fa7;a77#d74 7#b7 ,investment ,advisers ,act of #aidj ,section #bje7;b77#c7 of the ,investment ,advisers ,act of #aidj 7#ae ,u4,s4,c4 #hj;b-#e7;b77#c77 is amended-- 7,a7 by striking section #fa7;a77#c77;,b77iii7 and inserting section #fa7;a77#d77;,b77iii72 and 7,b7 by striking section #fa7;a77#c77;,b7 and inserting section #fa7;a77#d77;,b74 #c4 ,parity for business development companies regarding offering and proxy rules 7a7 ,revision to rules ,not later than #a year after the date of enactment of this ,act1 the ,securities and ,exchange ,commission shall revise any rules to the extent necessary to allow a business development company that has filed an election pursuant to section #ed of the ,investment ,company ,act of #aidj 7#ae ,u4,s4,c4 #hj;a-#ec7 to use the securities offering and proxy rules that are available to other issuers that are required to file reports under section #ac7;a7 or section #ae7;d7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #ghm7a72 #gho7d774 ,any action that the ,commission takes pursuant to this subsection shall include the following3 7#a7 ,the ,commission shall revise rule #dje under the ,securities ,act of #aicc 7#ag ,c4,f4,r4 #bcj4dje7-- 7,a7 to remove the exclusion of a business development company from the definition of a well-known seasoned issuer provided by that rule2 and 7,b7 to add registration statements filed on ,form ,n-#b to the definition of automatic shelf registration statement provided by that rule4 7#b7 ,the ,commission shall revise rules #afh and #afi under the ,securities ,act of #aicc 7#ag ,c4,f4,r4 #bcj4afh and #bcj4afi7 to remove the exclusion of a business development company from an issuer that can use the exemptions provided by those rules4 7#c7 ,the ,commission shall revise rules #afc and #afc;,a under the ,securities ,act of #aicc 7#ag ,c4,f4,r4 #bcj4afc and #bcj4afc;,a7 to remove a business development company from the list of issuers that are ineligible to use the exemptions provided by those rules4 7#d7 ,the ,commission shall revise rule #acd under the ,securities ,act of #aicc 7#ag ,c4,f4,r4 #bcj4acd7 to remove the exclusion of a business development company from that rule4 7#e7 ,the ,commission shall revise rules #ach and #aci under the ,securities ,act of #aicc 7#ag ,c4,f4,r4 #bcj4ach and #bcj4aci7 to specifically include a business development company as an issuer to which those rules apply4 7#f7 ,the ,commission shall revise rule #afd under the ,securities ,act of #aicc 7#ag ,c4,f4,r4 #bcj4afd7 to remove a business development company from the list of issuers that are excluded from that rule4 7#g7 ,the ,commission shall revise rule #dcc under the ,securities ,act of #aicc 7#ag ,c4,f4,r4 #bcj4dcc7 to specifically include a business development company that is a well-known seasoned issuer as an issuer to which that rule applies4 7#h7 ,the ,commission shall revise rule #dae under the ,securities ,act of #aicc 7#ag ,c4,f4,r4 #bcj4dae7-- 7,a7 to state that the registration for securities provided by that rule includes securities registered by a business development company on ,form ,n-#b2 and 7,b7 to provide an exception for a business development company from the requirement that a ,form ,n-#b registrant must furnish the undertakings required by item #cd4d of ,form ,n-#b4 7#i7 ,the ,commission shall revise rule #dig under the ,securities ,act of #aicc 7#ag ,c4,f4,r4 #bcj4dig7 to include a process for a business development company to file a form of prospectus that is parallel to the process for filing a form of prospectus under rule #dbd7;b74 7#aj7 ,the ,commission shall revise rules #agb and #agc under the ,securities ,act of #aicc 7#ag ,c4,f4,r4 #bcj4agb and #bcj4agc7 to remove the exclusion of an offering of a business development company from those rules4 7#aa7 ,the ,commission shall revise rule #dah under the ,securities ,act of #aicc 7#ag ,c4,f4,r4 #bcj4dah7 to provide that a business development company that would otherwise meet the eligibility requirements of ,general ,instruction ,i4,a of ,form ,s-#c shall be exempt from paragraph 7a77#c7 of that rule4 7#ab7 ,the ,commission shall revise rule #ad;a-#aja under the ,securities ,exchange ,act of #aicd 7#ag ,c4,f4,r4 #bdj4ad;a-#aja7 to provide that a business development company that would otherwise meet the requirements of ,general ,instruction ,i4,a of ,form ,s-#c shall be deemed to meet the requirements of ,form ,s-#c for purposes of ,schedule #ad;,a4 7#ac7 ,the ,commission shall revise rule #ajc under ,regulation ,,fd 7#ag ,c4,f4,r4 #bdc4ajc7 to provide that paragraph 7a7 of that rule applies for purposes of ,form ,n-#b4 7b7 ,revision to form ,n-#b ,not later than #a year after the date of enactment of this ,act1 the ,commission shall revise ,form ,n-#b-- 7#a7 to include an item or instruction that is similar to item #ab on ,form ,s-#c to provide that a business development company that would otherwise meet the requirements of ,form ,s-#c shall incorporate by reference its reports and documents filed under the ,securities ,exchange ,act of #aicd into its registration statement filed on ,form ,n-#b2 and 7#b7 to include an item or instruction that is similar to the instruction regarding automatic shelf offerings by well-known seasoned issuers on ,form ,s-#c to provide that a business development company that is a well-known seasoned issuer may file automatic shelf offerings on ,form ,n-#b4 7c7 ,treatment if revisions not completed in timely manner ,if the ,commission fails to complete the revisions required by subsections 7a7 and 7b7 by the time required by such subsections1 a business development company shall be entitled to treat such revisions as having been completed in accordance with the actions required to be taken by the ,commission by such subsections until such time as such revisions are completed by the ,commission4 7d7 ,rule of construction ,any reference in this section to a rule or form means such rule or form or any successor rule or form4 ,april #bd1 #bjah ,committed to the ,committee of the ,whole ,house on the ,state of the ,union and ordered to be printed