CBD Applauds the SEC Staff’s Process for Making Permanent the Co-Investment Relief First Granted in April 2020 in Support of Business Development Company Investments in Main Street Businesses

FOR IMMEDIATE RELEASE

DATE: March 24, 2022

Contact: press@coalitionforbusinessdevelopment.com

CBD Applauds the SEC Staff’s Process for Making Permanent the Co-Investment Relief First Granted in April 2020 in Support of Business Development Company Investments in Main Street Businesses

WASHINGTON – The Coalition for Business Development (CBD) applauds the SEC staff’s proposed process for making permanent the temporary co-investment emergency relief order it first granted in April 2020.  The proposed process calls for affected business development companies and their affiliates to submit individualized exemptive applications for an expedited review process. CBD worked extensively with the Commission over the past several months explaining the importance of this relief.  CBD appreciates the constructive dialogue with the SEC staff.     

“The relief, when formally issued, means that sponsors of business development companies, when considering whether to refinance existing debt and/or providing new capital resources to companies in which they participate, have access to additional pools of capital to provide such financing,” said, CBD Executive Director Dave Cohen.  “Importantly, the financial flexibility provided by the relief will further help to weather these economically turbulent times and benefits BDC investors and in particular the Main Street businesses supported by our industry.  We look forward to continuing to work with the Commission and its staff on additional ways to modernize co-investment relief,” Cohen continued. 

Once finalized, the new relief will allow BDCs to take advantage of the co-investment opportunities, which would be permanent and would not need to be extended further by the SEC or its staff.  

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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.