Charity Bank lent £48.6 million to charities and social enterprises in 2018, it has revealed.
This was a 43% increase from 2017, when it lent £34.1 million, and means it has lent over a quarter of a billion (£270 million) since 2002.
Last year’s loans included £21.2 million to support housing and local facilities projects; £12.1 million for the provision of arts, heritage, sports and faith, and £7.9 million towards employment, training and education.
According to Charity Bank, which announced the figures at its AGM this week, all of the charities and social enterprises polled said their Charity Bank loan helped deliver their mission and over half (54%) of borrowers had also unlocked additional funding from other sources as a result of the Charity Bank loan.
Motivations of borrowers were:
- Needing or wanting to acquire facilities or fixed assets, like a new building (72%)
- Innovation (56%)
- Wanting to grow (56%)
- Wanting to diversify income and improve sustainability (48%)
Ed Siegel, Chief Executive at Charity Bank said:
“Access to funding is crucial in enabling charities and social enterprises across the UK to continue and expand their work. The growth that the Charity Bank team achieved in lending last year is a success story for all of the charities and social enterprises involved. More importantly though, it’s a lifeline for the vulnerable people and communities throughout the UK who benefit from what they do and whose lives are enriched by their work.
“This lending wouldn’t be achievable without our savers – these are people who choose to save and invest for good to drive social change for those who need it. Major social change is only possible if money is invested in ways that benefit society. Growing our community of investors and savers who choose to invest for good is a vital part of our mission and impact. We encourage people to think about where their money is going. Our ultimate goal is a world in which everyone is a social investor or saver.”
Charity Bank’s 2019 impact report Money on a Mission is available as a pdf.
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