Yorkshire Forward has invested £10 million in a regional charity bank to support third sector
organisations in Yorkshire and Humber.
This investment in a 'regional' office of Charity Bank, a national organisation that aims to
support social enterprise, is the first of its kind by a Regional Development Agency.
Unique in being a registered general charity and an authorised bank, Charity Bank was
launched five years ago with the aim of creating a sustainable source of loan funds for charities
and social enterprises that commercial lenders generally can't or won't assist.
Yorkshire Forward's investment will improve the resource base for local community enterprise
by providing access to loan finance. It will also help to counter the effects of the new European
Funding programme, which will significantly reduce the level of funding available for community
economic development.
The money will be used as investment capital that will lever in other investment from the
private sector to provide affordable loans for enterprising charities, community organisations and
social enterprises operating within the third sector.
Thea Stein, Executive Director of Economic Inclusion for Yorkshire Forward said:
"This is a ground breaking project for Yorkshire Forward that will ensure that there are
financial instruments in place to aid third sector organisations away from grant dependency and
into sustainable self sufficiency.
We will be working with Regional Development Agencies in other regions to help them to
develop their own additional resources for third sector organisations, to make a similar system of
funding available across the country.
Malcolm Hayday, Chief Executive of Charity Bank said:
"We welcome the innovative lead that Yorkshire Forward has taken to open up access to finance
for organisations throughout the region, and which adds another element to the 'funding mosaic',
enabling these organisations to move between investment readiness, small grants support,
longer-term investment and loan finance.
We are looking forward to helping transform the opportunities for community groups and social
enterprises wherever they work and to making the Charity Bank in the North, a permanent feature of
the northern financial sector."
It is expected that the Leeds office of Charity Bank, its first ever regional headquarters,
will be open for business in the autumn, but organisations in Yorkshire and Humber wanting further
information should contact Charity Bank on tel. 01732 774040.
Yorkshire Forward invests £10 million in Regional Bank for the Third Sector