Saratoga Investment Corp (NYSE: SAR)

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You may not have heard of Saratoga Investment Corp (NYSE: SAR), a small cap business development company (BDC), but its shareholders undoubtedly love its 12% yield.But will that 12% yield stick around long enough to put the company on more investors’ radar?The New York-based BDC lends money to businesses that aren’t able to get bank loans. It lends to businesses in a variety of sectors including healthcare, technology, consumer services, and more.Because it’s a BDC, the measure of cash flow that we use is net interest income, or NII.Its latest fiscal year, which ended in February, saw a slight setback when NII declined 7%. That was after several years of strong growth.In the current fiscal year, NII is forecast to grow 19%. Even though that’s a positive, the Safety Net Model is a stern taskmaster and doesn’t stand for disappointment. The decline in the last fiscal year costs Saratoga a one-grade penalty.