To be treated as a Regulated Investment Company (RIC), a BDC must distribute at least 90% of its taxable income to shareholders. That normally means BDCs have to pay dividends, but, if there are no taxable earnings then no dividend is required (stated differently, the level of dividends will be tied to the level of a BDC's profits). In theory a BDC could also elect not to be treated as a RIC. But since being a RIC means the BDC avoids corporate level income tax, there are very limited circumstances where it would make sense to give up the RIC election.