# Charity Bank secures £1 million in equity capital investment - Link: https://fundraising.co.uk/2021/04/27/charity-bank-secures-1m-in-equity-capital-investment/ - Published: 2021-04-27T11:51:41+01:00 - Author: Melanie May **Charity Bank has secured £1 million in equity capital investment, which it will use to help it fund a surge in loan approvals.** The money comes from two investors: the [Samworth Foundation](https://samworthfoundation.org.uk/) has become the newest shareholder of [Charity Bank](https://charitybank.org/) with an investment of £500k, while existing Charity Bank shareholder, [Barrow Cadbury Trust](https://barrowcadbury.org.uk/), has increased its total investment in the bank by £500k to £750k. 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 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. Ed Siegel, Chief Executive, Charity Bank, commented: > “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.” 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. Erica Cadbury, Chair, Barrow Cadbury Trust, said: > ** **“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: > “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.” * **[6 months left for charity sector businesses to register unresolved banking disputes with BBRS](https://fundraising.co.uk/2022/08/10/6-months-left-for-charity-sector-businesses-to-register-unresolved-banking-disputes-with-bbrs/)**( 10 August 2022) * **[Free help available with unresolved banking complaints for charity sector businesses](https://fundraising.co.uk/2023/11/03/free-help-available-with-unresolved-banking-complaints-for-charity-sector-businesses/)**( 3 November 2023) * **[Barclays Private Bank publishes guide to giving for philanthropists](https://fundraising.co.uk/2024/02/28/barclays-private-bank-publishes-guide-to-giving-for-philanthropists/)**( 28 February 2024)