Following a Big Society capital investment in the Bank earlier in the year, Charity Bank is seeking to double the number of charities it helps in East Sussex and the South East.
The bank can offer loans of up to £2.5 million while providing free consultations to help potential borrowers in the region explore all the finance options open to them.
Charity Bank – an ethical bank purpose bank that takes savings from individuals and institutions, and lends solely to charities and other social sector organisations – currently lends to around 50 organisations across the South East England.
Its current borrowers from the region include organisations involved the arts, community projects, sports, education and youth, faith, housing, and health and social care.
This includes Emmaus Brighton and Hove, which provides a safe home, meaningful work, training and rehabilitation for 47 companions. Emmaus Brighton and Hove borrowed from Charity Bank to refinance an existing building society loan and to donate to Emmaus Hastings & Rother towards the establishment of a new community.
Charity Bank provides loans and support to help charities and other social sector organisations access the finance they need, on terms they can afford.
Charity Bank offers loans as follows:
• from £50,000 to £2.5 million
• larger loans can be arranged in partnership with other lenders
• loan periods of up to 25 years secured or five years unsecured
• early repayments can be made at no cost, unless the borrower chooses to refinance with another lender in the first two years
• trustee guarantees are not required
• loans can be used for a variety of projects and purposes, including property purchase or refurbishment, short-term bridging loans pending receipt of grant funding, working capital, and ‘final brick’ loans, to start the project when most of the funds have been raised
Charity Bank often lends when other banks will not, provided that the organisation can demonstrate an ability to repay and the loan will help increase its social impacts.
Carolyn Sims, Charity Bank’s Head of Banking, says: “Charity Bank was established in 2002 to be a different kind of bank, lending to charities so that they can secure the money they need, when they need it. Following Big Society Capital’s investment, we are in a position to lend to more organisations in the region at a time when they are under pressure and really need financial help.
“Loan finance can be empowering. Loans can help charities grow and expand their services, diversify their income streams or make the most of an available opportunity. Loans are most frequently used to buy a property, often enabling a charity to save on rent. Loans are also used develop an existing property or to provide additional working capital.”
During the free consultations, Sims and her team will explore the suitability of loan finance for charities and other social purpose organisations.
Sims says: “Charity Bank exists to help charities and other social sector organisations increase their social impacts, rather than to maximise its own profit. Loans are not the right solution for all organisations, and in those cases we will help them to consider alternative solutions.”
Charity Bank’s lending team can be contacted on 01732-774050 for an initial discussion about the suitability of loan finance for your organisation or to apply for a loan.
To request a free consultation, CLICK HERE:
For a free online guide to borrowing for charities, CLICK HERE:
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