CBD Applauds the Introduction of Bipartisan Legislation to Promote Main Street Investment
FOR IMMEDIATE RELEASE
DATE: October 19, 2021
Contact: press@coalitionforbusinessdevelopment.com
CBD Applauds the Introduction of Bipartisan Legislation to Promote Main Street Investment
H.R. 5598 will fix outdated BDC disclosure rules
WASHINGTON – The Coalition for Business Development (CBD) today applauded the introduction of H.R. 5598, the Access to Small Business Investor Capital Act, which would require the Securities and Exchange Commission (SEC) to correct misleading disclosures and provide BDCs with more flexibility over how they disclose their Acquired Fund Fees and Expenses.
“Current SEC rules around disclosure of BDC’s fees and expenses are out-of-date, misleading, and amount to double counting of fees already reflected in BDC’s public share prices,” said Joseph Glatt, CBD’s Chairman. “The unintended consequences of these rules restrict liquidity to BDCs, to the detriment of BDC investors and the small- and mid-sized businesses in which they invest.”
The bipartisan bill was introduced by Representative Brad Sherman (D-CA), Chair of the House Financial Services Subcommittee on Investor Protection, Entrepreneurship and Capital Markets, and Representative Bill Huizenga (R-MI), Ranking Member of the House Financial Services Subcommittee on Investor Protection, Entrepreneurship and Capital Markets.
“We applaud Chairman Sherman and Ranking Member Huizenga for introducing the bipartisan solution to provide additional flexibility in how such fees and expenses are disclosed, which will ensure BDC’s can best support America’s Main Street businesses,” Glatt added.
Chairman Sherman and Ranking Member Huizenga were instrumental in the Small Business Credit Availability Act in 2018, which amended another outdated SEC requirement for BDC lending.
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The Coalition is a member-driven, Washington-based trade association that advocates exclusively on behalf of BDCs to expand their ability to provide necessary growth capital to small- and middle-market Main Street businesses so they can expand, invest, and create jobs.