Charity Bank, the loans and savings bank for positive social change, today announced that Access – The Foundation for Social Investment has committed to invest £2.75m in the bank as part of their Flexible Finance for the Recovery programme. The funding package is comprised of a £1m investment in the shares of the bank and £1.75m in grant funding which together will support the bank’s ambition to reach more charities and social enterprises that have historically faced barriers to accessing social investment.
Charity Bank will leverage the Access investment with its own funds to develop a portfolio of smaller loans with more flexible terms. The funding from Access will also enable Charity Bank to offer blended finance packages of loans and small grants to its customers. Under the Access-funded loan programme, the bank also expects to significantly increase the range and diversity of organisations supported and will set specific targets for reaching ethnically diverse enterprises and other groups that have experienced exclusion from social investment.
Ed Siegel, CEO at Charity Bank said: “We’re excited by the immense impact potential we can unlock as we extend our reach to organisations that in the past have been overlooked by traditional lending criteria. The blended finance programme that we are rolling out as a result of the investment from Access is a key initiative under our updated, impact-led strategy.
“Charity Bank want to be the lender of choice for UK impact-driven organisations whilst also meeting our wider ambitions to increase the diversity of our lending and specifically seek out those organisations that are addressing the greatest needs of our society and our planet.
“I’d like to thank Access for their continued support; it’s by working with values-based partners like them that we are able to achieve our social impact growth ambitions.”
Seb Elsworth MBE, Chief Executive at Access said, “We know that charities and social enterprises can often struggle to access mainstream finance. The investment made in Charity Bank, through our Flexible Finance programme, will broaden the availability of patient and affordable finance available to charities and social enterprises and will help support Charity Bank itself to develop and grow its offer to organisations that have been excluded from social investment in the past.”
Access joins a diverse range of Charity Bank Shareholders, formed exclusively of charitable trusts, foundations, and other social purpose organisations.
To learn more about Charity Bank and its approach to loans and savings visit www.charitybank.org
