June 30, 2014
Revised estimate for the bill as ordered reported by the House Committee on Financial Services on November 13, 2013, due to a change in the effect on revenues to reflect new data.
H.R. 1800 would direct the Securities and Exchange Commission (SEC) to amend certain regulations that affect business development companies (BDCs)—companies that operate like a mutual fund to invest in the stocks of small, private companies and offer significant managerial assistance to the issuer. H.R. 1800 would allow BDCs to invest in advisors to investment companies and would raise the limits on the amount of leverage allowed to a BDC.
The staff of the Joint Committee on Taxation (JCT) estimates that enacting H.R. 1800 would reduce federal revenues by $81 million over the 2014-2024 period; therefore, pay-as-you-go procedures apply. CBO estimates that enacting H.R. 1800 would not affect direct spending.
Further, CBO estimates that implementing H.R. 1800 would increase spending by the Securities and Exchange Commission (SEC) by less than $500,000 per year to amend certain regulations affecting BDCs. However, the SEC is authorized to collect fees sufficient to offset its annual appropriation; therefore, CBO estimates that the net effect on spending would be negligible.
H.R. 1800 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would not affect the budgets of state, local, or tribal governments.