,,ii  #aae? ,,congress  #b;d ,session   
,s4 #bcbd  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,janu>y #ah1 #bjah ,mr4
 ,hell] 7= himself & ,mr4 ,man*97       
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,bank+1 ,h\s+1 & ,urban ,affairs  ,a    
,,bill  ,to am5d ! ,inve/m5t ,company   
,act ( #aidj 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$it ,availability 
,act4  #b4 ,exp&+ access to capital =   
bus9ess developm5t companies  7a7 ,9    
g5]al ,section #fa7;a7 ( ! ,inve/m5t    
,company ,act ( #aidj 7#ae ,u4,s4,c4    
#hj;a-#fj7;a77 is am5d$-- 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 n 
lat] ?an #e bus9ess days aft] ! date on 
:i* ^? asset cov]age requirem5ts are    
approv$ "u subp>agraph 7,d7 ( ?is       
p>agraph1 ! bus9ess developm5t company  
discloses t ! requirem5ts 7 approv$1 & !
 effective date ( ! approval1 9--  7i7  
any fil+ submitt$ to ! ,commission "u   
section #ac7;a7 or #ae7;d7 ( !          
,securities ,ex*ange ,act ( #aicd 7#ae  
,u4,s4,c4 #ghm7a72 #gho7d772 &  7ii7 a  
notice on ! website ( ! bus9ess         
developm5t company2  7,b7 ! bus9ess     
developm5t company discloses1 9 ea*     

p]iodic fil+ requir$ "u section #ac7;a7 
( ! ,securities ,ex*ange ,act ( #aicd   
7#ae ,u4,s4,c4 #ghm7a77--  7i7 !        
aggregate out/&+ pr9cipal am\nt or      
liquidation pref]5ce1 z applicable1 ( ! 
s5ior securities issu$ by ! bus9ess     
developm5t company & ! asset cov]age    
p]c5tage z ( ! date ( ! bus9ess         
developm5t company's mo/ rec5t f9ancial 
/atem5ts includ$ 9 t fil+2  7ii7 t !    
bus9ess developm5t company1 "u          
subp>agraph 7,d71 has approv$ ! asset   
cov]age requirem5ts "u ?is p>agraph2 &  
7iii7 ! effective date ( ! approval     
describ$ 9 clause 7ii72  7,c7 ) respect 
to a bus9ess developm5t company t is an 
issu] ( common equity securities1 ea*   
p]iodic fil+ ( ! company requir$ "u     
section #ac7;a7 ( ! ,securities ,ex*ange
 ,act ( #aicd 7#ae ,u4,s4,c4 #ghm7a77   
includes disclosures t are reasonably   
design$ to ensure t %>ehold]s are in=m$ 
(--  7i7 ! am\nt ( s5ior securities 7& !
 associat$ asset cov]age ratios7 ( !    
company1 det]m9$ z ( ! date ( ! mo/     

rec5t f9ancial /atem5ts ( ! company     
includ$ 9 t fil+2 &  7ii7 ! pr9cipal    
risk factors associat$ ) ! s5ior        
securities describ$ 9 clause 7i71 to !  
ext5t t risk is incurr$ by ! company2 & 
7,d7 ! company-- 7i7 7,i7 ?r\gh a vote (
 ! requir$ majority 7z def9$ 9 section  
#eg7o771 approves ! application ( ?is   
p>agraph to ! company1 to become        
effective on ! date t is #a ye> aft] !  
date ( ! approval2 or  7,,ii7 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 to become effective on ! fir/  
day aft] ! date ( ! approval2 &  7ii7 if
 ! company is n an issu] ( common equity
 securities t are li/$ on a national    
securities ex*ange1 ext5ds1 to ea* p]son
 t is a %>ehold] z ( ! date ( an        
approval describ$ 9 subclause 7,i7 or   
7,,ii7 ( clause 7i71 z applicable1 !    
opportunity 7:i* may include a t5d] (f]7
 to sell ! securities held by t %>ehold]

 z ( t applicable approval date1 ) #be  
p]c5t ( ^? securities to be repur*as$ 9 
ea* ( ! #d cal5d> qu>t]s foll[+ ! cal5d>
 qu>t] 9 :i* t applicable approval date 
takes place4  4  7b7 ,con=m+ am5dm5ts   
7#a7 ,inve/m5t ,advis]s ,act ( #aidj    
,section #bje7;b77#c7 ( ! ,inve/m5t     
,advis]s ,act ( #aidj 7#ae ,u4,s4,c4    
#hj;b-#e7;b77#c77 is am5d$-- 7,a7 by    
/rik+ section #fa7;a77#c77;,b77iii7 &   
ins]t+ section #fa7;a77#d77;,b77iii72 & 
7,b7 by /rik+ section #fa7;a77#c77;,b7 &
 ins]t+ section #fa7;a77#d77;,b74  7#b7 
,inve/m5t ,company ,act ( #aidj ,!      
,inve/m5t ,company ,act ( #aidj 7#ae    
,u4,s4,c4 #hj;a-#a et seq47 is am5d$--  
7,a7 9 section #eg 7#ae ,u4,s4,c4       
#hj;a-#ef7-- 7i7 9 subsection 7j77#a71  
by /rik+ section #fa7;a77#c77;,b7 &     
ins]t+ section #fa7;a77#d77;,b72 &  7ii7
 9 subsection 7n77#b71 by /rik+ section 
#fa7;a77#c77;,b7 & ins]t+ section       
#fa7;a77#d77;,b72 &  7,b7 9 section     
#fc7c7 7#ae ,u4,s4,c4 #hj;a-#fb7c771 by 
/rik+ section #fa7;a77#c7 & ins]t+      

section #fa7;a77#d74  #c4 ,p>ity =      
bus9ess developm5t companies reg>d+ (f]+
 & proxy rules  7a7 ,def9itions ,9 ?is  
section-- 7#a7 ! t]m bus9ess developm5t 
company has ! mean+ giv5 ! t]m 9 section
 #b7;a7 ( ! ,inve/m5t ,company ,act (   
#aidj 7#ae ,u4,s4,c4 #hj;a-#b7;a772     
7#b7 ! t]m ,commission means !          
,securities & ,ex*ange ,commission2     
7#c7 ! t]m ,=m ,n-#b means ! =m describ$
 9 section #bci4ad ( title #ag1 ,code ( 
,f$]al ,regulations2  7#d7 ! t]m ,=m    
,s-#c means ! =m describ$ 9 section     
#bci4ac ( title #ag1 ,code ( ,f$]al     
,regulations2 &  7#e7 ! t]m ,s*$ule     
#ad;,a means ! in=mation requir$ "u     
section #bdj4ad;a-#aja ( title #ag1     
,code ( ,f$]al ,regulations4  7b7       
,revision to rules  7#a7 ,9 g5]al ,n    
lat] ?an #a ye> aft] ! date ( enactm5t (
 ?is ,act1 ! ,commission %all make !    
revisions describ$ 9 p>agraph 7#b7 to   
all[ a bus9ess developm5t company t has 
fil$ an election "u 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 #ac7;a7 or section #ae7;d7 (
 ! ,securities ,ex*ange ,act ( #aicd    
7#ae ,u4,s4,c4 #ghm7a72 #gho7d774  7#b7 
,requir$ revisions ,! revisions describ$
 9 ?is p>agraph are revisions to-- 7,a7 
section #bcj4dje ( title #ag1 ,code (   
,f$]al ,regulations--  7i7 to remove !  
exclusion ( a bus9ess developm5t company
 f ! def9ition ( ! t]m well-kn[n season$
 issu] "u t section2 &  7ii7 to add a   
regi/ration /atem5t fil$ on ,=m ,n-#b to
 ! def9ition ( ! t]m automatic %elf     
regi/ration /atem5t "u t section2  7,b7 
sections #bcj4afh & #bcj4afi ( title    
#ag1 ,code ( ,f$]al ,regulations1 to    
remove ! exclusion ( a bus9ess          
developm5t company f an issu] t is      
eligible = ! exemptions "u ^? sections2 
7,c7 section #bcj4afc ( title #ag1 ,code
 ( ,f$]al ,regulations1 to remove a     
bus9ess developm5t company f ! li/ (    
issu]s t are ineligible = ! exemption "u

 t section2  7,d7 section #bcj4afc;,a ( 
title #ag1 ,code ( ,f$]al ,regulations1 
to remove ! communications made by a    
bus9ess developm5t company f ! li/ (    
communications t are ineligible = !     
exemption "u t section2  7,e7 section   
#bcj4acd ( title #ag1 ,code ( ,f$]al    
,regulations1 to remove ! exclusion ( a 
communication relat+ to a bus9ess       
developm5t company f ! application ( t  
section2  7,f7 sections #bcj4ach &      
#bcj4aci ( title #ag1 ,code ( ,f$]al    
,regulations1 to specifically include a 
bus9ess developm5t company z an issu] to
 :i* ^? sections apply2  7,g7 section   
#bcj4aef ( title #ag1 ,code ( ,f$]al    
,regulations1 to provide t no?+ 9 t     
section may be con/ru$ to prev5t a      
bus9ess developm5t company f qualify+ = 
an exemption "u section #bcj4afh or     
#bcj4afi ( title #ag1 ,code ( ,f$]al    
,regulations1 z am5d$ by ! ,commission 9
 accordance ) ! requirem5ts ( ?is       
section2  7,h7 section #bcj4afd ( title 
#ag1 ,code ( ,f$]al ,regulations1 to    

remove a bus9ess developm5t company f ! 
li/ ( issu]s t are exclud$ "u t section2
  7,i7 section #bcj4dcc ( title #ag1    
,code ( ,f$]al ,regulations1 to         
specifically include a bus9ess          
developm5t company t is a well-kn[n     
season$ issu] z an issu] to :i* t       
section applies2  7,j7 section #bcj4dae 
( title #ag1 ,code ( ,f$]al ,regulations
 to /ate t ! regi/ration = securities "u
 section #bcj4dae7;a77#a77x7 ( title    
#ag1 ,code ( ,f$]al ,regulations1       
includes securities regi/]$ on ,=m ,n-#b
 by a bus9ess developm5t company t w\ld 
o!rwise meet ! eligibility requirem5ts (
 ,=m ,s-#c2  7,k7 section #bcj4dig (    
title #ag1 ,code ( ,f$]al ,regulations1 
to include a process = a bus9ess        
developm5t company to file a =m (       
prospectus 9 ! same mann] z ! process = 
fil+ a =m ( prospectus "u section       
#bcj4dbd7;b7 ( title #ag1 ,code ( ,f$]al
 ,regulations2  7,l7 sections #bcj4agb &
 #bcj4agc ( title #ag1 ,code ( ,f$]al   
,regulations1 to remove ! exclusion ( an

 (f]+ ( a bus9ess developm5t company f !
 application ( ^? sections2  7,m7       
section #bcj4dah ( title #ag1 ,code (   
,f$]al ,regulations1 to provide t a     
bus9ess developm5t company t w\ld       
o!rwise meet ! eligibility requirem5ts (
 ,=m ,s-#c %all be exempt f p>agraph    
7a77#c7 ( t section2  7,n7 ,s*$ule      
#ad;,a to revise item #ac7;b77#a7 ( t   
,s*$ule to include a bus9ess developm5t 
company t w\ld o!rwise meet !           
requirem5ts ( note ,e ( t ,s*$ule z an  
issu] to :i* t item applies2  7,o7      
section #bdc4ajc ( title #ag1 ,code (   
,f$]al ,regulations1 to provide t       
p>agraph 7a7 ( t section applies = !    
purposes ( ,=m ,n-#b2 &  7,p7 item #cd  
on ,=m ,n-#b to require a bus9ess       
developm5t company to provide und]tak+s 
t are no m re/rictive ?an ! und]tak+s t 
are requir$ ( a regi/rant "u section    
#bbi4eab ( title #ag1 ,code ( ,f$]al    
,regulations4  7c7 ,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 ! reports &      
docum5ts fil$ by ! bus9ess developm5t   
company "u ! ,securities ,ex*ange ,act (
 #aicd 7#ae ,u4,s4,c4 #gh;a et seq47    
into ! regi/ration /atem5t ( ! bus9ess  
developm5t company 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  7d7 
,treatm5t if revisions n complet$ 9     
timely mann] ,if ! ,commission fails to 
complete ! revisions requir$ "u         
subsections 7b7 & 7c7 by ! dates        
describ$ 9 ^? subsections1 a bus9ess    
developm5t company1 dur+ ! p]iod beg9n+ 
on ! date t is #a day aft] #a ye> aft] !

 date ( enactm5t ( ?is ,act & end+ on ! 
date t ! ,commission completes ^?       
revisions1 may deem ^? revisions to h   
be5 complet$ 9 accordance ) ! actions   
requir$ to be tak5 by ! ,commission "u  
^? subsections4  7e7 ,rules (           
con/ruction  7#a7 ,treatm5t ( successor 
regulations & =ms ,any ref]5ce 9 ?is    
section to a regulation or =m %all be   
con/ru$ z a ref]5ce to-- 7,a7 t         
regulation or =m1 z 9 effect on ! day   
be=e ! date ( enactm5t ( ?is ,act2 or   
7,b7 any successor to t regulation or   
=m4  7#b7 ,di/ribution ( sales mat]ial  
,no?+ 9 ?is section1 or 9 ! am5dm5ts    
made pursuant to ! requirem5ts ( ?is    
section1 may be con/ru$ to prev5t a     
bus9ess developm5t company f di/ribut+  
sales mat]ial "u section #bcj4dhb (     
title #ag1 ,code ( ,f$]al ,regulations4