Gladstone Capital Corporation is a business development company. The Company invests in debt and equity securities, consisting primarily of secured first and second lien term loans to lower middle market businesses. Its investment objectives are to achieve and grow current income by investing in debt securities of established lower middle market companies (companies with annual earnings before interest, taxes, depreciation and amortization (EBITDA) of $3 million to $25 million) in the United States that will provide stable earnings and cash flow to pay expenses, make principal and interest payments on its outstanding indebtedness, and make distributions to stockholders; and provide its stockholders with long-term capital appreciation in the value of its assets by investing in equity securities, in connection with its debt investments, that can grow over time to permit it to sell its equity investments for capital gains. It is externally managed by Gladstone Management Corporation.