Charity Bank secures £1m in equity capital investment

first_img  “We see this investment as a means to promote social justice and further develop the social investment market as an additional and vital resource for the social sector.  Charity Bank has proven that its model of lending to charities and social enterprises is a highly effective way to strengthen and grow impact-led organisations, leaving these organisations better placed to address the many pressing social issues facing people and society today.” Tessa Durham, Grants Manager, The Samworth Foundation also commented on the investment, saying: To meet the growing demand for repayable finance, including the demand for unsecured funding, Charity Bank aims to raise at least £3m in ordinary share capital from new and existing social investors by 2022.  For every £1m invested, Charity Bank can raise around £7m of deposits and make around £8m of social loans, and once repaid, loan funds can be recycled. AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to LinkedInLinkedInShare to EmailEmailShare to WhatsAppWhatsAppShare to MessengerMessengerShare to MoreAddThis  678 total views,  1 views today AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to LinkedInLinkedInShare to EmailEmailShare to WhatsAppWhatsAppShare to MessengerMessengerShare to MoreAddThis According to Charity Bank’s 2020 social impact study, 69% of borrowers reported that their Charity Bank loan enabled growth in their service, 81% said their project could not have gone ahead without the loan, while 42% said the financing helped to keep their organisation afloat. Charity Bank committed to record lending in the second half of 2020, approving £49m of loans, the highest amount of new loan approvals over a six-month period in the history of the bank.  It also approved an additional £23m of loans in the first quarter of 2021, and has now made over £350m in loans to charities and social enterprises since it was founded in 2002. Advertisement “Since we emerged from the first lockdown in mid-2020, we have seen a sustained surge in loan applications from charities and social enterprises looking for support on projects, in part due to a reduced appetite for lending to the sector from mainstream lenders.  As we emerge from the current crisis, the specialist financing and support that Charity Bank is able to deliver is going to be needed more than ever.  The attraction of new equity investment remains a top priority for Charity Bank as this is an essential component that will determine our ability to continue to meet the financing needs of the social sector into the future.” Tagged with: banks Finance Charity Bank secures £1m in equity capital investment “We recognise the importance of blended finance solutions to support charities to flourish.  We see Charity Bank as a strategic partner as we work together to support organisations to become more resilient, manage risks and be better positioned to meet the future needs of their communities.” Charity Bank has secured £1 million in equity capital investment, which it will use to help it fund a surge in loan approvals. Melanie May | 27 April 2021 | News The money comes from two investors: the Samworth Foundation has become the newest shareholder of Charity Bank with an investment of £500k, while existing Charity Bank shareholder, Barrow Cadbury Trust, has increased its total investment in the bank by £500k to £750k. Erica Cadbury, Chair, Barrow Cadbury Trust, said: Ed Siegel, Chief Executive, Charity Bank, commented: About Melanie May Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via www.thepurplepim.com.last_img

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