The challenge
For many social enterprises and charities, a loan secured on a building or other asset is an affordable route to finance. However, even organisations with valuable assets often struggle to access funding through mainstream banks. Many are seeking more aligned and supportive relationships with their financial institutions. Depositors also increasingly want to ensure their savings are held by an organisation that shares their values and supports impactful enterprises across the UK.
Our approach
Dedicated social banks such as Charity Bank provide finance to UK charities and social enterprises with a deep understanding of their business models and help to lend on attractive terms. They also have a strong regional presence, enabling them to reach a wide range of organisations.
The Fund
This co-investment facility provides capital to enable Charity Bank to expand its offering and make larger loans to social enterprises and charities. These loans may be used to help borrowers expand their impact, for example by making substantial asset purchases such as property for premises to deliver their services.
Our investment in this facility was increased to £35 million in December 2024.
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Fund size
N/A -
Better Society Capital commitment
£35.2 million
Key information
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Geography
UK wide -
Investment type
Enterprise debt -
Fund manager
Charity Bank -
Investment status
Current -
Investment date
2015 -
Term
Perpetuity
Impact
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Number of active borrowers
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Average loan size
Sustainable development goals
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1: No Poverty End poverty in all its forms everywhere -
3: Good Health and Well-being Ensure healthy lives and promote well-being for all at all ages -
4: Quality Education Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all -
7: Affordable and Clean Energy Ensure access to affordable, reliable, sustainable and modern energy for all -
8: Decent Work and Economic Growth Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all -
11: Sustainable Cities and Communities Make cities and human settlements inclusive, safe, resilient and sustainable
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Other investors