RCB limit down to £5m
The UK Government has announced that it will lower the limit for RCB issues to £5 million.
In May this year the Government launched a consultation on potential changes to the regulations on taxation of securitisation companies. Amongst other points, it asked respondents for their views on lowering the threshold which determines the minimum size for RCB issues. We submitted a joint response, together with the Impact Investing Institute, Big Society Capital and Social Enterprise UK arguing that the £10 million limit excluded many charities and social enterprises that are not able to support borrowing at that scale.
Yesterday the Government published its response to the consultation and agreed that the limit should be lowered to £5 million. We’re delighted with this result, which comes after seven years of lobbying for change and will open up the bond markets to many more smaller borrowers.
To find out more about raising unsecured funding from £5m through RCB, please get in touch.