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What is the current maximum leverage ratio permitted by law for Business Development Companies?

November 27, 2017

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What is the current maximum leverage ratio permitted by law for Business Development Companies?

 

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Answer:  BDCs are currently able to utilize a maximum leverage ratio of 1:1.

Note:  Recently introduced legislation in Congress would allow BDCs to increase their maximum leverage from 1:1 to 2:1.

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