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What Is a Business Development Company (BDC)?

By Jason Hall – Updated Jun 2, 2025 at 1:12PM

Key Points

  • BDCs provide capital to small and medium-sized firms, offering high dividend yields.
  • They must distribute 90% of income, leading to frequent large payouts but less reinvestment.
  • High fees and debt levels are potential risks, but strong interest rates may allow new deals.
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