,,ii  #aaeth ,,congress  #b;d ,session  
,s4 #bcbd  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,january #ah1  
#bjah ,mr4 ,heller 7for himself and ,mr4
 ,manchin7 introduced the following     
bill2 which was read twice and referred 
to the ,committee on ,banking1 ,housing1
 and ,urban ,affairs  ,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 not later than #e    
business days after the date on which   
those asset coverage requirements are   
approved under subparagraph 7,d7 of this
 paragraph1 the business development    
company discloses that the requirements 
were approved1 and the effective date of
 the approval1 in--  7i7 any filing     

submitted to the ,commission under      
section #ac7;a7 or #ae7;d7 of the       
,securities ,exchange ,act of #aicd 7#ae
 ,u4,s4,c4 #ghm7a72 #gho7d772 and  7ii7 
a notice on the website of the business 
development company2  7,b7 the business 
development company discloses1 in each  
periodic filing required under section  
#ac7;a7 of the ,securities ,exchange    
,act of #aicd 7#ae ,u4,s4,c4 #ghm7a77-- 
7i7 the aggregate outstanding principal 
amount or liquidation preference1 as    
applicable1 of the senior securities    
issued by the business development      
company and the asset coverage          
percentage as of the date of the        
business development company's most     
recent financial statements included in 
that filing2  7ii7 that the business    
development company1 under subparagraph 
7,d71 has approved the asset coverage   
requirements under this paragraph2 and  
7iii7 the effective date of the approval
 described in clause 7ii72  7,c7 with   
respect to a business development       

company that is an issuer of common     
equity securities1 each periodic filing 
of the company required under section   
#ac7;a7 of the ,securities ,exchange    
,act of #aicd 7#ae ,u4,s4,c4 #ghm7a77   
includes disclosures that are reasonably
 designed to ensure that shareholders   
are informed of--  7i7 the amount of    
senior securities 7and the associated   
asset coverage ratios7 of the company1  
determined as of the date of the most   
recent financial statements of the      
company included in that filing2 and    
7ii7 the principal risk factors         
associated with the senior securities   
described in clause 7i71 to the extent  
that risk is incurred by the company2   
and  7,d7 the company-- 7i7 7,i7 through
 a vote of the required majority 7as    
defined in section #eg7o771 approves the
 application of this paragraph to the   
company1 to become effective on the date
 that is #a year after the date of the  
approval2 or  7,,ii7 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 for  
the application of this paragraph to the
 company1 to become effective on the    
first day after the date of the         
approval2 and  7ii7 if the company is   
not an issuer of common equity          
securities that are listed on a national
 securities exchange1 extends1 to each  
person that is a shareholder as of the  
date of an approval described in        
subclause 7,i7 or 7,,ii7 of clause 7i71 
as applicable1 the opportunity 7which   
may include a tender offer7 to sell the 
securities held by that shareholder as  
of that applicable approval date1 with  
#be percent of those securities to be   
repurchased in each of the #d calendar  
quarters following the calendar quarter 
in which that applicable approval date  
takes place4  4  7b7 ,conforming        
amendments  7#a7 ,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 
7#b7 ,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 7#ae     
,u4,s4,c4 #hj;a-#ef7-- 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  
#fc7c7 7#ae ,u4,s4,c4 #hj;a-#fb7c771 by 
striking section #fa7;a77#c7 and        
inserting section #fa7;a77#d74  #c4     
,parity for business development        
companies regarding offering and proxy  
rules  7a7 ,definitions ,in this        
section-- 7#a7 the term business        
development company has the meaning     

given the term in section #b7;a7 of the 
,investment ,company ,act of #aidj 7#ae 
,u4,s4,c4 #hj;a-#b7;a772  7#b7 the term 
,commission means the ,securities and   
,exchange ,commission2  7#c7 the term   
,form ,n-#b means the form described in 
section #bci4ad of title #ag1 ,code of  
,federal ,regulations2  7#d7 the term   
,form ,s-#c means the form described in 
section #bci4ac of title #ag1 ,code of  
,federal ,regulations2 and  7#e7 the    
term ,schedule #ad;,a means the         
information required under section      
#bdj4ad;a-#aja of title #ag1 ,code of   
,federal ,regulations4  7b7 ,revision to
 rules  7#a7 ,in general ,not later than
 #a year after the date of enactment of 
this ,act1 the ,commission shall make   
the revisions described in paragraph    
7#b7 to allow a business development    
company that has filed an election under
 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  7#b7 ,required revisions ,the
 revisions described in this paragraph  
are revisions to-- 7,a7 section #bcj4dje
 of title #ag1 ,code of ,federal        
,regulations--  7i7 to remove the       
exclusion of a business development     
company from the definition of the term 
well-known seasoned issuer under that   
section2 and  7ii7 to add a registration
 statement filed on ,form ,n-#b to the  
definition of the term automatic shelf  
registration statement under that       
section2  7,b7 sections #bcj4afh and    
#bcj4afi of title #ag1 ,code of ,federal
 ,regulations1 to remove the exclusion  
of a business development company from  
an issuer that is eligible for the      
exemptions under those sections2  7,c7  
section #bcj4afc of title #ag1 ,code of 
,federal ,regulations1 to remove a      
business development company from the   

list of issuers that are ineligible for 
the exemption under that section2  7,d7 
section #bcj4afc;,a of title #ag1 ,code 
of ,federal ,regulations1 to remove the 
communications made by a business       
development company from the list of    
communications that are ineligible for  
the exemption under that section2  7,e7 
section #bcj4acd of title #ag1 ,code of 
,federal ,regulations1 to remove the    
exclusion of a communication relating to
 a business development company from the
 application of that section2  7,f7     
sections #bcj4ach and #bcj4aci of title 
#ag1 ,code of ,federal ,regulations1 to 
specifically include a business         
development company as an issuer to     
which those sections apply2  7,g7       
section #bcj4aef of title #ag1 ,code of 
,federal ,regulations1 to provide that  
nothing in that section may be construed
 to prevent a business development      
company from qualifying for an exemption
 under section #bcj4afh or #bcj4afi of  
title #ag1 ,code of ,federal            

,regulations1 as amended by the         
,commission in accordance with the      
requirements of this section2  7,h7     
section #bcj4afd of title #ag1 ,code of 
,federal ,regulations1 to remove a      
business development company from the   
list of issuers that are excluded under 
that section2  7,i7 section #bcj4dcc of 
title #ag1 ,code of ,federal            
,regulations1 to specifically include a 
business development company that is a  
well-known seasoned issuer as an issuer 
to which that section applies2  7,j7    
section #bcj4dae of title #ag1 ,code of 
,federal ,regulations to state that the 
registration for securities under       
section #bcj4dae7;a77#a77x7 of title    
#ag1 ,code of ,federal ,regulations1    
includes securities registered on ,form 
,n-#b by a business development company 
that would otherwise meet the           
eligibility requirements of ,form ,s-#c2
  7,k7 section #bcj4dig of title #ag1   
,code of ,federal ,regulations1 to      
include a process for a business        

development company to file a form of   
prospectus in the same manner as the    
process for filing a form of prospectus 
under section #bcj4dbd7;b7 of title #ag1
 ,code of ,federal ,regulations2  7,l7  
sections #bcj4agb and #bcj4agc of title 
#ag1 ,code of ,federal ,regulations1 to 
remove the exclusion of an offering of a
 business development company from the  
application of those sections2  7,m7    
section #bcj4dah of title #ag1 ,code of 
,federal ,regulations1 to provide that a
 business development company that would
 otherwise meet the eligibility         
requirements of ,form ,s-#c shall be    
exempt from paragraph 7a77#c7 of that   
section2  7,n7 ,schedule #ad;,a to      
revise item #ac7;b77#a7 of that         
,schedule to include a business         
development company that would otherwise
 meet the requirements of note ,e of    
that ,schedule as an issuer to which    
that item applies2  7,o7 section        
#bdc4ajc of title #ag1 ,code of ,federal
 ,regulations1 to provide that paragraph

 7a7 of that section applies for the    
purposes of ,form ,n-#b2 and  7,p7 item 
#cd on ,form ,n-#b to require a business
 development company to provide         
undertakings that are no more           
restrictive than the undertakings that  
are required of a registrant under      
section #bbi4eab of title #ag1 ,code of 
,federal ,regulations4  7c7 ,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   
the reports and documents filed by the  
business development company under the  
,securities ,exchange ,act of #aicd 7#ae
 ,u4,s4,c4 #gh;a et seq47 into the      
registration statement of the business  
development company 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  7d7 ,treatment if revisions not 
completed in timely manner ,if the      
,commission fails to complete the       
revisions required under subsections 7b7
 and 7c7 by the dates described in those
 subsections1 a business development    
company1 during the period beginning on 
the date that is #a day after #a year   
after the date of enactment of this ,act
 and ending on the date that the        
,commission completes those revisions1  
may deem those revisions to have been   
completed in accordance with the actions
 required to be taken by the ,commission
 under those subsections4  7e7 ,rules of
 construction  7#a7 ,treatment of       
successor regulations and forms ,any    
reference in this section to a          

regulation or form shall be construed as
 a reference to-- 7,a7 that regulation  
or form1 as in effect on the day before 
the date of enactment of this ,act2 or  
7,b7 any successor to that regulation or
 form4  7#b7 ,distribution of sales     
material ,nothing in this section1 or in
 the amendments made pursuant to the    
requirements of this section1 may be    
construed to prevent a business         
development company from distributing   
sales material under section #bcj4dhb of
 title #ag1 ,code of ,federal           
,regulations4