Title 15, Commerce and TradeRelease 119-102
§80a–61 Loans
Title 15 › CHAPTER 2D — INVESTMENT COMPANIES AND ADVISERS › SUBCHAPTER I — INVESTMENT COMPANIES › § 80a–61
Summary
Treat a business development company like a registered closed‑end investment company for the loan rules, even if another exemption might apply. That does not stop loans to directors, officers, employees, or general partners to buy the company’s securities if the loan follows separate loan rules, nor loans to a company it controls when any common‑control result exists only because a third person controls it.
Full Legal Text
Title 15, §80a–61
Commerce and Trade, Source: USLM XML via OLRC
Notwithstanding the exemption set forth in section 80a–6(f) of this title, section 80a–21 of this title shall apply to a business development company to the same extent as if it were a registered closed-end investment company, except that nothing in that section shall be deemed to prohibit—
(1)any loan to a director, officer, or employee of, or general partner in, a business development company for the purpose of purchasing securities of such company as part of an executive compensation plan, if such loan meets the requirements of section 80a–56(j) of this title; or
(2)any loan to a company controlled by a business development company, which companies could be deemed to be under common control solely because a third person controls such business development company.
Reference
Citations & Metadata
Citation
15 U.S.C. § 80a–61
Title 15, Commerce and Trade
Last Updated
Aug 21, 2026
Release point: 119-102