The 1:1 leverage limitation set by existing statutes was too restrictive and may have forced business development companies (BDCs) to invest in high yielding debt to make the returns that investors seek. Increasing leverage can help. With twice as much leverage now available, it is possible for BDCs to focus on higher credit quality and lower yielding assets to achieve equity returns of around 9% - 12%. But, is this what BDCs want to do? Directors will have to plan on effective communications with shareholders, lenders and ratings agencies to gain their approval. Today, BDCs on average have less than 1.00x leverage. This is yet another opportunity for further distinction among BDCs as they make these decisions.