Printer Friendly

SEC's White opposes H.R. 3868.

At a Banking Committee hearing, Sen. Patrick Toomey (R.Pa.) pressed Mary Jo White, chair of the SEC, on why she has voiced opposition to a bipartisan House bill that would make it easier Business for Business Development Companies (BDCs) to invest in small and medium-sized businesses. The bill is called the Small Business Credit Availability Act (H.R. 3868), and it passed the House Financial Services Committee by a whopping bipartisan vote of 53-4. There are currently more than 80 BDCs in existence in the United States with more than $70 billion in outstanding loans to middle-market businesses (U.S. companies with $5 million to $150 million in annual revenues). Fifty-seven of the BDSs are publicly traded. The most controversial aspect of the bill is that it would increase a BDC's ability to deploy capital to businesses by reducing its asset coverage ratio, or required ratio of assets to debt, from 200% to 150% if certain requirements are met. White objected to that increase in "leverage," saying "I still have investor protection concerns."

COPYRIGHT 2016 Institute of Management Accountants
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2016 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:ON THE HILL
Author:Barlas, Stephen
Publication:Strategic Finance
Article Type:Brief article
Geographic Code:1USA
Date:Sep 1, 2016
Words:174
Previous Article:SEC initiative challenged: facing criticism, Sec Chair Mary Jo White comes to the defense of the disclosure effectiveness initiative.
Next Article:Networking today: professional networking skills can build success in your career and organization.
Topics:

Terms of use | Privacy policy | Copyright © 2020 Farlex, Inc. | Feedback | For webmasters