CAF Bank to lend £75m to charities in next three years
CAF Bank has said it plans to lend up to £75m to the charity and social enterprise sector over the next three years.
The bank is a specialist deposit-taker for charity bank accounts, and holds around £1bn of charitable assets belonging to around 16,500 charities. Historically it has not lent money out to the sector, but placed it on deposit with other banks.
The bank is a wholly-owned subsidiary of the Charities Aid Foundation and gift aids up about £2.5m in profits each year.
Peter Ostacchini, chief executive of CAF Bank, told Civil Society News the bank had decided to start lending because there was an obvious need for finance in the charity sector, and that lending was “a natural progression of the business model”.