Risk Factors Update Summary

• Increased borrowing under the Small Business Credit Availability Act of 2018 from $830 million to $1.092 billion.
• Increased reliance on information systems and technology, with potential costs rising from current levels.
• Potential breaches in cybersecurity, leading to disruptions, misappropriation, and loss of confidential information.
• Approval to seek additional leverage, increasing debt outstanding from $957.5 million to $1.092 billion.
• Potential adverse effects from a disaster or infrastructure disruption on business operations and continuity.
• Increased vulnerability to cyber-attacks due to evolving artificial intelligence technologies.
• Risks associated with maintaining cash balances exceeding federally insured limits at financial institutions.
• Potential impact of rising interest rates on borrowing costs and net investment income.
• Heightened operational risks due to vendors offering mobile and cloud-based services, impacting cybersecurity.
• Regulatory focus on cybersecurity, with increased scrutiny and potential compliance costs.
• Transition from LIBOR to SOFR may introduce operational risks in accounting and financial management.
• Concerns over U.S. debt ceiling and budget deficit driving downgrades, impacting credit risk and debt markets.
• Increased focus on ESG factors may lead to additional costs and risks, affecting brand value.
• Uncertainty regarding future interest rate increases and their impact on portfolio investments and borrowing costs.