A business development company invests money in privately owned, small- and medium-sized companies. Generally the businesses are facing challenges and need help to grow or get back on track, and they may not be able to obtain financing through traditional means, like bank loans or bond issues.

A business development company (BDC) is an organization that invests in small- and medium-sized companies as well as distressed companies. A BDC helps these firms grow in the initial stages of their development. With distressed businesses, the BDC helps the companies regain sound financial footing.

A business development company (BDC) is a specific corporate structure for companies that provide capital to smaller and midsize companies, as well as distressed businesses in need of capital.