In March 2019, the SEC, at the direction of Congress, proposed rules (the “Proposed Rules”) to modify the registration, communications, and offering processes for business development companies (“BDCs”) and registered closed-end funds, including interval funds (together, “Affected Funds”), under the Securities Act of 1933 (the “Securities Act”). Many of these proposals are intended to provide Affected Funds access to certain streamlined offering processes that are currently available only to operating companies. At the same time, the Proposed Rules would also impose on Affected Funds additional reporting obligations under the Securities Exchange Act of 1934. In short, key elements of the proposals are:
The Proposed Rules are the result of two pieces of legislation passed by Congress in March and May 2018, respectively: the Small Business Credit Availability Act and the Economic Growth, Regulatory Relief, and Consumer Protection Act. Although the statutes were intended to provide BDCs and closed-end funds greater flexibility in offerings, many of the Proposed Rules, particularly the new 8-K reporting obligations, could increase burdens on closed-end funds’ compliance requirements. Comments on the Proposed Rules are requested within 60 days after publication of the release in the Federal Register. For the full SEC release, please visit: https://www.sec.gov/rules/proposed/2019/33-10619.pdf.
 An investment would be deemed to be a significant investment if the registrant’s and its subsidiaries’ investments in a portfolio holding exceed 10% of the total assets of the registrant and its consolidated subsidiaries.