BDC makes their money by extending loans to small and medium business who could not otherwise get funding. They make money mostly via interest rate spread. BDC companies usually distribute 70-90% of their income as dividend and hence most BDC stocks have 10+% yield
With interest rate cut coming, BDC companies might not be as profitable (their margin could be squeezed when interest rate goes lower). If you buy BDC stocks, make sure you know their business and their current financial situation
Good luck
