Business Development Companies (BDCs) are incredibly important to the growth of the middle market sector of our economy. BDCs provide critical capital and managerial expertise to middle market companies in order to purchase equipment, hire new employees, increase inventory, and expand their facilities. Access to capital is key to growing revenues, and middle market companies continue to rely on BDCs to access capital to grow their revenue base.
Before we dip into why improving the regulatory structure of BDCs will help get more capital to middle market companies, it will be important first to take a look at the state of the economy of the middle market sector. According to the National Center for the Middle Market, approximately 57 percent of middle market companies are growing their revenues, and nearly one-third of middle market companies expect to grow the employment base of their firms in the next year. The Middle Market Indicator for the 4th Quarter of 2015 signals that middle market companies grew their revenues by 6.1 percent and grew their employee base by 3.6 percent over the past year.These are all strong numbers and BDCs are proud to invest in middle market companies to help them keep growing.