Places for People has invested £250,000 and become a shareholder in Charity Bank – the loans and savings bank for charities, social enterprises and people who want to make the world a better place.
Charity Bank uses its savers’ money to provide much-needed loans to UK organisations working to drive positive social change – bringing benefits for people, communities and the environment.
Since 2002, Charity Bank has made more than 1000 loans totalling over £350m to housing, education, social care, community and other social purpose organisations. Charity Bank is owned by social purpose organisations and aims to use its expertise, commitment and flexible approach to lending, to help charities and social enterprises get the support and funding they need.
As part of the recent £4 million equity investment drive alongside six other key investors, the latest funding injection will now be used to help the bank in being able to make more than £32 million in new loans to UK charities and social enterprises at a time when the social sector is in need of sustainable financing solutions.
Marcus Hulme, Director of Places Impact, Places for People, said: "As an affordable-homes led placemaker, Places for People believes places work when they work for everyone. We are committed to delivering homes and places for the long-term that are sustainable economically, socially, and environmentally. Our investment and our work with Charity Bank, an organisation which shares our values, means we can help more people access these homes and places, and make an impact across the UK."
Ed Siegel, Chief Executive, Charity Bank, continued: “Having such a diverse group of impact investors joining as Shareholders in Charity Bank is a positive reflection of our success in reaching impact-driven organisations in the UK with specialist financing and support. With this additional investment, we will be able to expand and broaden our support, helping more charities and social enterprises access the funding they need to sustain and grow their services.”
“UK charities and social enterprises are responding to an array of urgent social issues, but following an extended period of public budget austerity, many have struggled to secure sufficient funding. The effects of the Coronavirus pandemic have only made this situation worse. In the midst of the COVID-19 crisis, when many lenders moved to the sidelines, Charity Bank approved a record level of new loans. The new equity investments we have secured will enable us to continue to grow our lending and to offer the bespoke financing solutions that will be needed by many organisations as they rebound from the effects of the pandemic.”
Supporting other social impact initiatives
The Charity Bank investment is one of many social impact initiatives supported by Places for People; earlier this year the Group committed to tackling the UK’s poverty premium by investing in the Fair by Design (FBD) Fund – an organisation which helps to grow businesses that make markets fairer. Group charity, Places Foundation, committed £250,000 to FBD, which is managed by Ascension Ventures and aims to address the poverty premium in the UK by backing social tech ventures.
And in April 2021, the Group invested a further £200,000 investment loan to Big Issue Invest – an organisation that enables social enterprises to access finance to grow, develop and sustain social impact – taking its total commitment to £625,000.
The Group has continued to build on its strong track record of supporting customers and communities and helping to remove the barriers that stop people achieving their potential. We will continue this commitment throughout the final months of 2021, into 2022 and beyond.
For more information on the Charity Bank, please visit: www.CharityBank.org