Social lender Charity Bank has launched a new £5m social investment bond that will allow people in Liverpool to invest in social enterprises in their area.
The bond has been developed in partnership with Liverpool Vision, an economic development company set up by Liverpool City Council to encourage investment in the city.
The money raised by the bond will be used to offer loan finance, from £50,000 to £2m, to social enterprises and other community organisations in north Liverpool and south Sefton, which contain six of the most deprived wards in the country.
Malcolm Hayday, chief executive of Charity Bank, said the bond offered people in Liverpool the chance to invest in the regeneration of their local area without giving their money away.
"It's a great alternative for those who, in this economic climate, might be struggling to sustain their support for charity," he said. "We can use their savings to fund these vital projects and then they can get their money back when they want it.
"And unlike a donation – which, once spent, is gone – we can lend the money out again and again."
Charity Bank has previously launched a Welsh community bond to help Welsh people invest their money in local charities.