payment cap lifted for community interest companies
The community interest companies (CIC) regulator responded to
consultation by lifting limits on amounts that can be distributed
to investors. As such, the dividend cap has now been raised to 20%
of each share (previously 5% above Bank of England base rate) and
the loan interest cap has been increased to 10% of the value of the
loan (previously 4% above base rate).
The regulator has indicated that she will review the changes in
two or three years time in order to see how effective they
were.
It is hoped that this development will increase interest and
investment for social enterprises.
