Goldman Sachs BDC amended its senior secured revolving credit agreement to, among other things, reduce the company’s minimum asset coverage ratio financial covenant from 200% to 150%. According to a related 8-K filing, SunTrust served as administrative agent for the transaction.

There was no fee or change in borrowing cost under the revolving credit facility in connection with the amendment.

This amendment follows the passage of the Small Business Credit Availability Act (SBCA Act) in March, 2018, which seeks to increase the availability of funding to middle market U.S. companies by increasing capital available to business development companies, such as GS BDC.

“Since the passage of the SBCA Act approximately six months ago, we have worked diligently to secure the necessary approvals from our various stakeholders to position the company to benefit from the increased flexibility resulting from the change in law. This amendment to our credit facility marks the last necessary approval in that process, and we look forward to continuing to execute our core strategy of direct lending to middle market businesses, but with the added benefit of a broader product set for borrowers,” said Brendan McGovern, CEO of the company.

Goldman Sachs BDC is a specialty finance company that has elected to be regulated as a business development company under the Investment Company Act of 1940.