Description:
H.R. 4267 would direct the Securities and Exchange Commission (SEC) to amend certain regulations that affect business development companies (BDCs)—companies that operate like mutual funds to invest in the stocks of small private companies and that offer significant managerial assistance to issuers. H.R. 4267 would raise the limits on the amount of leverage allowed to a BDC if it met certain requirements. The bill also would eliminate the exclusion of a BDC from qualifying as a well-known seasoned issuer (WKSI).
The staff of the Joint Committee on Taxation (JCT) estimates that enacting H.R. 4267 would reduce federal revenues by $33 million over the 2018-2028 period; therefore, pay-as-you-go procedures apply. Enacting the bill would not affect direct spending.
Using information from the SEC, CBO estimates that implementing H.R. 4267 would cost less than $500,000 to amend certain regulations affecting BDCs and WKSIs. However, the SEC is authorized to collect fees sufficient to offset its annual appropriation; therefore, CBO estimates that the net effect on discretionary spending would be negligible.
CBO estimates that enacting H.R. 4267 would not affect direct spending and would not increase on-budget deficits by more than $5 billion in any of the four consecutive 10-year periods beginning in 2028.
H.R. 4267 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act.
