£600m for Big Society lender launched

Big Society Capital, the government’s social investment ‘bank’, is now accepting loan bids. The £600m institution aims to make it easier for charities, social enterprises and community groups to access finance.

By Civil Service World

12 Apr 2012

Around £400m is to come from dormant bank accounts, while the remaining £200m is to be provided by Barclays, Lloyds, HSBC and RBS.

The organisation can’t borrow against its assets, limiting its ability to lend to the voluntary sector; and warnings have been issued that the bank won’t be able to help all the charities with financial difficulties.

“It is important not to present the bank as a financial panacea for the charity sector. Loans must be repaid,” said John Low, chief executive of the Charities Aid Foundation.

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