Capital Southwest Corp. decreased its minimum asset coverage ratio to 150% from 200%, effective April 25.

A spending bill that President Donald Trump signed in March 2018 included a provision that allowed business development companies to take on higher debt leverage in the course of their activities.

The BDC's board also approved a resolution to limit Capital Southwest's issuance of senior securities, in that the asset coverage ratio should not be below 166% at any time after the effective date of issuance of these securities.