Published: 09:49, 08 October 2021
| Updated: 09:51, 08 October 2021
An ethical bank which lends money to charities and social enterprises has been boosted by £4million in new equity investment.
The Charity Bank, which has its head office on Tonbridge High Street, says the money will be leveraged with deposits to allow it to make more than £32m in new loans to organisations in the social sector at a time of acute need.
The money has come from seven investors. Six of which, The Garfield Weston Foundation (£1m), The Clothworker’s Foundation (£1m), Bank Workers Charity (£250,000), Places for People (£250,000), Drapers’ Company (£250,000) and Alternative Bank Switzerland (£250,000) will become shareholders in the bank, while Big Society Capital has approved an additional £1m.
Ed Siegel, chief executive at Charity Bank, said: “Having such a diverse group of impact investors joining as shareholders 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.
“UK charities and social enterprises are responding to an array of urgent social issues, but following an extended period of public budget austerity, many have struggled to secure sufficient funding. The effects of the coronavirus pandemic have only made this situation worse. In the midst of the Covid crisis, when many lenders moved to the sidelines, Charity Bank approved a record level of new loans. The new equity investments we have secured will enable us to continue to grow our lending and to offer the bespoke financing solutions that will be needed by many organisations as they rebound from the effects of the pandemic.”
Charity Bank’s current customers include Imago, a social action charity that delivers diverse services to support individuals, organisations and communities across Kent, Medway, East Sussex and London. A loan helped the charity to purchase its new headquarters.
Another local example is The Causeway Hall in Chiddingstone Causeway, that used a loan to build its new village hall.