Charity Bank savings account funds Liverpool social enterprises

A £5m fund for social enterprises working in Sefton, near Liverpool has been launched by Charity Bank.

The Liverpool Sefton Social Investment Bond is aimed at regenerating the deprived areas of North Liverpool and South Sefton. These areas have business start-up and survival rates well below those elsewhere in the city, and the UK average.

The £5m will be raised through a savings account which is open to private investors, charities and businesses. The minimum deposit is £1,000. Charity Bank has teamed up with Liverpool Vision, the city's economic development company, to promote the bond.

Liverpool Vision director of investment and enterprise Mike Taylor said: 'The problem needs a creative solution and we're confident we've found that in the new bond, which will encourage social investment - an alternative form of philanthropy, in that people don't have to give their money away to support good causes.'

Charity Bank CEO Malcolm Hayday said: 'It's a great alternative for those who, in this economic climate, might be struggling to sustain their support for charity, because we can use their savings to fund these vital projects, and then they can get their money back when they want it.

'And unlike a donation which once spent, is gone, we can lend the money out again and again while it remains with us.'

Loan finance from £50,000 to £2m will be offered to social enterprises and other community organisations in the North Liverpool and South Sefton area that are creating jobs and attracting investment.

Interest rates will range from 0.5 per cent to 2.5 per cent depending on the notice period and the amount deposited.