Charity Bank lending up by 43 per cent in 2018

The bank lent nearly £49m last year to charities and social enterprises, compared with £34.1m in 2017

Charity Bank lent £48.6m to charities and social enterprises in 2018, a 43 per cent increase on the year before.

The results, which were announced at its annual general meeting this week, are a significant increase on the £34.1m the bank lent in 2017, and almost a fifth of the £270m the bank has lent since opening in 2002.

The bank lent money to 82 different organisations in 2018, compared with 66 the year before.

The loans made by the bank include £21.2m to support various housing and local facilities projects, £12.1m for arts, heritage, sports and faith, and £7.9m towards employment, training and education.

The bank’s annual borrower survey also showed that 93 per cent of customers believed that the loan they received made a major positive contribution to their organisation’s work.

Buying assets or facilities was the main reason for charities taking loans in 72 per cent of cases, with more than half also citing innovation or growth as reasons for their loan application, the survey found.

Forty-eight per cent of applicants pursued a loan to try to diversify income and improve sustainability.

Ed Siegel, chief executive of Charity Bank, said: "Growing our community of investors and savers who choose to invest for good is a vital part of our mission and impact. Our ultimate goal is a world in which everyone is a social investor or saver."

The bank has also appointed a new chair, Alan Hodson, who took over from George Blunden this week.

Hodson said: "I am excited to take the bank forward to the next stage, bringing my experience from both the commercial and charity sectors to support the board as they look to the future and expanding the work of Charity Bank."

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