Charity lending increase defies credit crunch

Charity lending increase defies credit crunch

News

Social investment bank Triodos has confounded the expectations of recessionary Britain by announcing record lending levels of over £93m to charities and social enterprises in the UK, up £20m from the previous year.

“Many banks are simply taking a blanket view that the sector is too financially fragile to lend to. Triodos doesn’t hold that view; we know that this is the most important time to support the sector,” said Sue Cooper, deputy head of Business Banking and leader of the social banking team.

The bank also says that lending requests have continued to be high in 2009. In total the bank now lends over £200m.

“We are currently working on proposals to raise equity, with money from the Triodos Opportunities Fund – for investment in projects. This increases the money available to organisations wanting to borrow from Triodos”, Cooper continued.

Borrowers in 2008 included Freshwinds in Birmingham, a charity that provides health care to those with life limiting illnesses and those from disadvantaged backgrounds.

“We couldn’t have fulfilled our growth potential and continued to support our local community, without this funding”, said Mohammed S. Al-Rahim, founder, president and chief executive of Freshwinds.