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Charity Bank’s loan book exceeds £100 million

Social Enterprise Mark holder Charity Bank, the ethical bank that uses savings to make loans to charities and social enterprises, today announced that its book of drawn loans has exceeded £100 million for the first time. The bank also shared details of its five most recent loans that helped it to reach this milestone.

Since 2002, Charity Bank has provided over £185 million of loan finance to support more than 850 organisations working to enrich and improve society. These loans have facilitated social impact across the UK covering a wide range of sectors, including arts, community, education, environment, faith, health, housing, regeneration, social care and sports.

Patrick Crawford, Chief Executive of Charity Bank, said: “At the start of 2015 we had a loan book of £52.2 million; two and half years later our loan book has almost doubled. Our growth provides further evidence of how more charities and social enterprises are using loan finance to help them deliver their missions.”

“We continue to be inspired by the charities and social enterprises we have the privilege to work with every day as they help the disadvantaged, enrich lives and improve communities. These organisations are the real heroes and it is our role and privilege to be here to support what they do.” 

The five loans that most recently helped Charity Bank grow its loan book to £100 million:

Elderpark Housing Association

Operating in the Govan area of Glasgow that has experienced significant challenges since the decline of its shipbuilding industry, Elderpark Housing Association is a not-for-profit organisation that aims to improve the quality of social housing available for local people. Currently providing 1,265 rental units, a loan from Charity Bank will enable Elderpark to refurbish 29 more units.

Glossopdale Furniture Project

Since 1997, Glossopdale Furniture Project has been providing good-quality household items at affordable prices to local people on low incomes. All furniture is donated with some being restored or built out of reclaimed material on site, so the project also contributes to recycling and reducing waste locally. A Charity Bank loan will assist with the purchase of a new shop in Glossop.

Hudswell Community Charity

With property and rental prices increasing in the Yorkshire Dales village of Hudswell, many local people with low income can no longer afford to live there. Hudswell Community Charity currently manages three houses in the village. With the help of a Charity Bank loan, the charity is building three more affordable homes, which will be rented to those most in need in the community.

YMCA Black Country Group

From accommodation and childcare provision to employment and health services, the YMCA Black Country Group provides a whole range of opportunities and support networks to help young people from across the Black Country build strong foundations for a better life. A loan from Charity Bank allowed the charity to consolidate its loans on terms that were better suited to its plans for the future.

Stretham & Wilburton Community Land Trust

The two East Cambridge parishes of Stretham and Wilburton came together in 2012 both to address the affordable housing crisis in the area that was resulting in local people and workers having to move away, and to give local people a voice in the development of their community. A Charity Bank loan has enabled the purchase of eight housing units, which will offer housing for 16 persons at below market rent.

Charity Bank’s Loan Portfolio Report for 2017/18 provides many more examples of social sector organisations using loan finance to help them deliver their missions.

Charity Bank: a bank for good

Big Society Capital invests a further £2.5 million in Charity Bank

Charity Bank announces strong start to the year as Big Society Capital invests a further £2.5 million

Big Society Capital has invested £2.5 million in the share capital of Social Enterprise Mark holder Charity Bank and has committed in principle to invest a further £2.5 millionon or before 1st December 2017. This will complete Big Society Capital’s pledge in March 2014 to invest up to £14.5 million in ordinary shares of Charity Bank.

Charity Bank, the ethical bank that uses savings to make loans to charities and social enterprises, has lent over £180 million since 2002. Charity Bank is run for the sector and owned by the sector, as all of its shareholders are charitable trusts, foundations and social purpose organisations. This further investment from Big Society Capital will allow it to make more loans to social sector organisations in the coming years.

This investment is made as Charity Bank experiences continued growth. Charity Bank has had a strong start to the year with £28 million of new loan approvals in the first five months of 2017. This continues the momentum since Big Society Capital’s initial investment in 2014, with the loan book growing by over 25% per year in the two years to 31st December 2016.

George Blunden, Chairman of Charity Bank, says: “These further injections of capital from Big Society Capital will enable us to meet the growing demand for loans from charities and social enterprises.”

“Share capital is vital to our mission. It underpins the bank and enables us to leverage our savers’ money. An investment in Charity Bank creates a multiple effect – for every £1 of share capital invested we can lend £8 to help create lasting social change in our communities.”

“When Big Society Capital pledged its original investment, we said that we hoped it would be the first of a small number of significant new investors over the next five to ten years. The Mercers Charitable Foundation invested a further £1 million in 2015 and the Barrow Cadbury Trust invested £250,000 in 2016.”

“We are inviting other charitable trusts, foundations and social purpose organisations to invest in our share capital and join with us in using the tools of finance to create a better society for all.”

Anna Shiel, Head of Origination of Big Society Capital says: Big Society Capital’s investment in Charity Bank plays an important role in making capital available to small and medium sized charities. Over 850 loans have now been made to organisations totalling more than £180m. These loans have helped support people all around the UK, with 97% of organisations saying it has contributed to achieving their mission and 68% saying the loan helped them to expand their services. Upon the completion of our investment, we look forward to seeing more people and communities supported by their work.”

Patrick Crawford, Chief Executive of Charity Bank, says: “The stable quality and growing size of our loan book demonstrate that loans can be an important and effective tool for social sector organisations seeking to make a bigger difference to the world around them.”

“In the face of a shifting political, social and economic outlook, one thing is certain: the social sector will continue to play a vital role in addressing the needs of communities across the UK. At Charity Bank, we have the resource and capacity to play our part. We are here to help charities and social enterprises adapt, take advantage of new opportunities and create a better world.”

A team from Linklaters led by Aisling Zarraga and Rebecca Rigby acted on a pro-bono basis for Charity Bank, supporting its General Counsel in advising the Board on Big Society Capital’s investment. Linklaters has contributed over 1,000 hours of specialist legal advice to Charity Bank over the past four years.

Big Issue Invest Launches ‘Impact Loans England’ Programme

Social Enterprise Mark holder Big Issue Invest has today launched Impact Loans England, a new £5 million lending scheme aimed at enabling social enterprises to access loan funding of between £20,000 and £150,000.

The programme is funded by Access – The Foundation for Social Investment, with finance being provided by its partners Big Lottery Fund and Big Society Capital.

Impact Loans England GRAPHIC

The Impact Loans England programme is now available to organisations across England with the £5 million to lend over the next three years. The funding is available to organisations keen to do more of the good work they do – whether it’s buying equipment, hiring new talent, or progressing with business development plans.

Daniel Wilson-Dodd, Head of Lending at Big Issue Invest says, “A lot of great organisations struggle to access small and medium-sized loans, so we wanted to provide support for those exciting social enterprises and charities.”

One of the first organisations to take advantage of the new finance scheme is Impact Hub Birmingham. It offers office and events space for like-minded social enterprise and arts organisations, hosting one-off workshops and ongoing collaborative projects. The hub’s city centre building opened in May last year, after a crowdfunding campaign raised an initial £65,000 for an impressive refurbishment of a Victorian warehouse.

“We were interested in building a better Birmingham, and thought that having a place to bring together lots of organisations with good ideas was a good way of achieving that,” says Andy Reeve, co-founder of Impact Hub Birmingham.

The team behind the Hub has encouraged a range of groups to work together on specific policy challenges and themes, like better childcare. “We’re providing the opportunity for people to work together on a consistent basis,” Reeve explains. “The financial support from Big Issue Invest will allow us to expand what we do.”

The Impact Loans England programme is a continuation of what Big Issue Invest has been doing over the past few years in other schemes aimed at helping social enterprises grow, often by accessing finance for the very first time. Big Issue Invest anticipates the popularity of this programme and is planning to deliver a deal a week for the first six months after launch.

Applications for Impact Loans England are now open. For more information please visit bigissueinvest.com or email [email protected]. You can also download the brochure.

A Twitter Q&A with @BigIssueInvest will be held in February, using the tag #ADealAWeek.

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