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Investment fund: Charity Bank
4 May 2011
What areas of the UK does this fund invest in? UK wide
Is this fund sector/asset class specific? Charity Bank lends to social enterprises, charities, community organisations and other social profit organisations.
Are start-ups eligible for this fund? Yes
What organisational structures are funded (eg CIC/Charity/CLG)?
We can lend to any organisation that is a registered (or exempt) charity; as well as to community associations, voluntary organisations, community businesses, CIC, social enterprises or social landlords as long as the purpose of the loan are charitable. We also lend to for-profit companies if the loan is for exclusively charitable purposes.
What structures does this fund use (e.g. equity/unstructured loan/grant etc)?
We offer loans or guarantees. We can lend secured or unsecured.
What return do you look for from an investment from this fund?
Our interest rate is generally between 6.5% and 7.5% per year irrespective of base rate. We also make a onetime charge to contribute to our administration costs. Generally this is 1% of the loan amount.
What impact do you look for in an investment from this fund?
Loans must be exclusively for charitable purposes.
Minimum size of deal:
Maximum size of deal:
£2,000,000 (larger deals may be done in partnership with other social lenders)
What proportion of investments are classified high, medium and low risk?
Over 99% of the loans made by Charity Bank have been repaid in full
Are audited accounts required?
Is match funding available?
Charity Bank loans can be used as matched funding.
Is there maximum and minimum recipient turnover requirements?
Is a percentage of investee income to come from trading?
Do you have a preferred and/or maximum length of investment?
Loans are generally for periods from six months to 10 years, with loans secured on property for periods up to 25 years.