The banks are once again lending to small businesses "but not as strongly as the companies need it to come back," the chairman and portfolio head of the business development company MVC Capital told CNBC Friday.
As a result, companies like MVC are "fulfilling the need to finance these companies and all parts of the capital structures," Michael Tokarz said. "So we do that and we get higher yields than the banks do."
A business development company, known as a BDC, is created to help grow small companies in the initial stages of their development.