Yes, Saratoga Investment Corp. is structured and regulated as a business development company (BDC) under the Investment Company Act of 1940. Business development companies are specifically created to facilitate capital formation for small and mid-sized operating companies by providing them with debt and equity financing. In exchange for operating under strict regulatory oversight regarding leverage limits and asset diversification, BDCs enjoy pass-through tax treatment, provided they distribute the vast majority of their taxable earnings to shareholders in the form of regular dividends.