Rand Capital board approves reduction of asset coverage requirement

Rand Capital Corporation announced that, on January 24, 2024, its Board of Directors approved a reduction of the company’s minimum asset coverage ratio from 200% to 150%, effective January 24, 2025. Daniel P. Penberthy, President and CEO, commented, “By taking this step now, we are better positioning Rand for the long term and more closely aligning the Company with other BDC funds corporate financing structures. This change will provide future flexibility to incur additional leverage within prudent limits that are in the best interests of shareholders and support future portfolio growth.” The reduction to Rand’s minimum asset coverage ratio is being made pursuant to Section 61(a)(2) of the Investment Company Act of 1940, as amended by the Small Business Credit Availability Act.