{"id":131,"date":"2014-12-10T19:34:59","date_gmt":"2014-12-10T19:34:59","guid":{"rendered":"http:\/\/henristeenkamp.com\/?p=131"},"modified":"2019-05-06T19:35:22","modified_gmt":"2019-05-06T19:35:22","slug":"part-2-working-with-a-bdc-what-cfos-need-to-know","status":"publish","type":"post","link":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/part-2-working-with-a-bdc-what-cfos-need-to-know\/","title":{"rendered":"Part 2 Working with a BDC. What CFOs Need to Know"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/henristeenkamp.com\/wp-content\/uploads\/2015\/01\/Screen-Shot-2015-01-02-at-3.08.27-PM-e1420229462616.png\" alt=\"Henri Steenkamp\" class=\"aligncenter size-full wp-image-109\" height=\"114\" width=\"491\" \/><\/p>\n<h3 style=\"text-align: center\"><span style=\"color: #993300\">Research Studies and Opinions<\/span><\/h3>\n<p>&nbsp;<\/p>\n<p>Despite high-profile commitments by major banks to small-business lending,\u00a0overall loan volume to small and middle-market companies has declined.\u00a0Estimates from the Federal Reserve Bank of Cleveland reveal that small-business\u00a0lending has plummeted from more than 50 percent of non-farm,\u00a0nonresidential bank lending in 1995 to less than 30 percent in 2014, with little\u00a0sign of a reverse. In addition, few banks are willing to make cash-flow\u00a0loans to smaller middle-market companies, those with EBITDA of less than\u00a0$10 million.<\/p>\n<p>CFOs looking for capital, especially cash-flow loans, are increasingly discovering\u00a0alternative sources, particularly Business Development Companies\u00a0(\u201cBDCs\u201d). In the 1970s, a perceived crises in capital markets led Congress\u00a0to amend the Investment Company Act of 1940 in 1980. This added a new\u00a0category of closed-end investment companies known as BDCs. BDCs make\u00a0cash-flow loans as capital providers to private or thinly traded portfolio companies\u00a0for the long-term, and BDCs work best when they function as a business\u00a0partner. There are now about 50 BDCs in the US with more on the\u00a0way. CFOs of companies with $10 million to $50 million in EBITDA should\u00a0know how to engage, connect and work with them.<\/p>\n<p><span style=\"color: #000000\">Read the full article at\u00a0<\/span><a href=\"http:\/\/www.saratogainvestmentcorp.com\/resources.html\" style=\"color: #ef4136\"><em>Saratoga Investment Corp<\/em><\/a><span style=\"color: #000000\">.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Research Studies and Opinions &nbsp; Despite high-profile commitments by major banks to small-business lending,\u00a0overall loan volume to small and middle-market companies has declined.\u00a0Estimates from the Federal Reserve Bank of Cleveland reveal that small-business\u00a0lending has plummeted from more than 50 percent of non-farm,\u00a0nonresidential bank lending in 1995 to less than 30 percent in 2014, with little\u00a0sign [&hellip;]<\/p>\n","protected":false},"author":1176,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_mi_skip_tracking":false,"footnotes":""},"categories":[3,9],"tags":[115],"class_list":["post-131","post","type-post","status-publish","format-standard","hentry","category-blog","category-saratoga-posts","tag-saratoga-posts"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/wp-json\/wp\/v2\/posts\/131","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/wp-json\/wp\/v2\/users\/1176"}],"replies":[{"embeddable":true,"href":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/wp-json\/wp\/v2\/comments?post=131"}],"version-history":[{"count":0,"href":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/wp-json\/wp\/v2\/posts\/131\/revisions"}],"wp:attachment":[{"href":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/wp-json\/wp\/v2\/media?parent=131"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/wp-json\/wp\/v2\/categories?post=131"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/wp-json\/wp\/v2\/tags?post=131"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}