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Design of Anchorage to Concrete

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I have been asked to design some bolts for pullout and shear using section 1923 of the UBC. Specifically, it is for the  "TJ shear panels" which are commonly used at the front panels of
garages where there are very little room and the wall bear over a 6" to 8" garage curb. Since the face of wall is always at one edge of the curb,  the edge distance to the bolt is always 1.75" to 2".

In section 1923.3 (design of shear), it states that the edge distance shall in no case be less than 4 diameters. In my case, I am using 7/8" diameter bolts which amounts to an edge distance of 3.5".
Why is it so critical to have such a large edge distance, especially for an unloaded edge?