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SBIA expresses support for bill to ensure accurate disclosure for BDCs

WASHINGTON, D.C. (August 28, 2023) – The Small Business Investor Alliance (SBIA), the premier association representing Business Development Companies (“BDCs”) and lower middle market private equity and its investors, expressed support for legislation introduced by U.S. Rep. Andrew Garbarino (R-NY) that will exempt funds that invest in BDCs from including the acquired fund fees and expenses (“AFFE”) calculation in the prospectus fee table. The bill, H.R. 5273, has been referred to the House Committee on Financial Services.

BDCs are a critical source of capital for middle market companies across the country and are mandated by law to invest 70% of their assets in private and small-cap American businesses; however, that number is closer to 95%. BDCs also allow retail investors to take part in the growth and success of these businesses while growing their retirement funds.

“SBIA supports public policy that helps investors report the most accurate information and guarantees that the U.S. capital markets remain competitive, transparent and liquid,” said SBIA President Brett Palmer. “We look forward to working with Congress to pass a bipartisan bill that will ensure BDCs are returned to the indices.”

SBIA looks forward to working with Congress to move the bill forward.


About the Small Business Investor Alliance

The Small Business Investor Alliance (SBIA) is the premier organization of lower middle market private equity funds and investors. SBIA works on behalf of its members as a tireless advocate for policies that promote competitive markets and robust domestic investment for growing small businesses. SBIA has been playing a pivotal role in promoting the growth and vitality of the private equity industry for over 60 years. For more information, visit or call (202) 628-5055.