Barclays bank has announced it will invest £1 million in the Charity Bank, which provides low interest loans for community groups.
The Charity Bank has supplied around £55 million in capital to 500 charitable organisations to date.
It aims to empower organisations which lack easy access to mainstream lenders by linking them up to providers with an interest in demonstrating their corporate social responsibility.
Barclays invested £500,000 in the bank in 2004, but the 2007 loan will be made on a commercial basis, which Barclays hails as a marker of the Charity Bank's success.
"Charity Bank has grown from a position where Barclays' charitable funds once subsidised a loan to Charity Bank to one where the new investment will be structured on a commercial basis," said Mike Stone, head of Barclays Charities Team.
"This is a really positive and timely message for the community finance sector."
The charity Bank is currently engaged in a capital raising programme, hoping to attract over £10 million in new investment.For more information about loans, click here.
© Adfero Ltd