Definition of Eligible Portfolio Company Under the Investment Company Act of 1940

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The Commission is adopting two new rules under the Investment Company Act of 1940 ("Investment Company Act" or "Act"). The new rules more closely align the definition of eligible portfolio company, and the investment activities of business development companies ("BDCs"), with the purpose that Congress intended. The rules expand the definition of eligible portfolio company in a manner that promotes the flow of capital to certain small, developing and financially troubled companies.