The spending bill signed by President Donald Trump this week contains a surprise gift for a particular class of private lender. Investors in so-called business development companies are celebrating, though not all will benefit equally.
Tucked inside the more than 2,000-page bill is a provision that would allow business development companies to double their leverage to a debt-to-equity ratio of two-to-one. These companies are essentially listed private lenders that make loans to midsize companies, backed by a combination of...