Section 1 Short title
This Act may be cited as the “Business Development Company Modernization Act”.
Business Development Company Modernization Act
A BILL
To permit business development companies to increase investments in small-and middle-market financial services companies and investment advisors.
Sec. 2 Investments of business development companies
The Investment Company Act of 1940 is amended—
in section 2(a)(46(B) (15 U.S.C. 80a–2(46)(B)) by striking “nor a company which would be an investment company except for the exclusion from the definition of investment company in section 3(c) of this title”; and
in section 60 (15 U.S.C. 80a–59) by striking “except that the Commission shall not” and inserting
“(1) section 12 shall not apply to the purchasing, otherwise acquiring, or holding by a business development company of any security issued by, or any other interest in the business of, any person who is—
“(A) an investment adviser registered under title II of this Act or who is an investment adviser to an investment company; or
“(B) an eligible portfolio company as defined in section 2(a)(46) (15 U.S.C. 80a–2(a)(46)); and
“(C) the Commission shall not”