Charity Bank to make £32m loans available to the sector

Charity Bank has announced £4m in new equity investments to fuel its plan to make more than £32m loans to UK charities and social enterprises.

Most of the new investment comes from six new shareholders in the Bank, including trusts and foundations.

The Garfield Weston Foundation and the Clothworker’s Foundation have both added £1m each.

Meanwhile, the Bank Workers Charity, housing association Places for People, Drapers Company and Alternative Bank Switzerland have invested £250,000 each.

Elsewhere, existing shareholder Big Society Capital has approved £1m in investment.

The Bank says the new investments will be leveraged through deposits to make more than £32m in new loans available to UK charities and social enterprises.

“These investments evidence the growing appetite amongst trusts, foundations and other impact first organisations to make social investments as an alternative to grant-making to meet their social impact objectives,” said the Bank.

Charity Bank chief executive Ed Siegel added: “Having such a diverse group of impact investors joining as shareholders in Charity Bank is a positive reflection of our success in reaching impact-driven organisations in the UK with specialist financing and support.

“With this additional investment, we will be able to expand and broaden our support, helping more charities and social enterprises access the funding they need to sustain and grow their services.”

Garfield Weston Foundation director Philippa Charles said that the move “complements the Foundation’s aim to support organisations that have effective solutions to helping those most in need”.

The Bank Workers Charity has become the first occupational benevolent fund to become a shareholder in the charity through the move.

“We were very keen to support the important work that Charity Bank does across the social sector,” said Michael Field, chair of the charity’s finance and investment committee.

“The impact of the Coronavirus pandemic has been devastating, and we are proud to see our investment go directly towards assisting the communities and people who are most in need.”

Meanwhile, Alternative Bank Switzerland (ABS) is the first shareholder from outside the UK.

“Our investment in Charity Bank has a strong effect and leverages the investment significantly for people in need,” said ABS management board member Tanja Reuter.

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