The Co-operative Bank has committed to providing £30m of loan funding to help charities, co-operatives and social enterprises grow and invest in their organisations throughout 2024. The fund offers a range of options to help you achieve your objectives now and into the future.
Find out how to apply for the Charity and Co-operative Lending Fund.
If you do not yet have a Co-operative Bank business current account, we will help you open one if your lending application is successful.
The Charity and Co-operative Lending Fund is available for business use only.
All businesses can apply for a loan from a minimum of £25,020.
Please contact one of our Relationship Managers. Fixed Rate terms only accepted on loans of £250,000 or more. The maximum funding limit is £10m.
Charged monthly or quarterly. For sole traders and partnerships, your personal financial circumstances will also be taken into account.
Variable Rate Loans
The interest rate is variable and linked to the Bank of England Base Rate, plus the appropriate interest margin which will be determined by the financial status of your business. This means the interest rate that you pay will change as base rate changes.
Fixed Rate Loans
A fixed rate loan has a fixed interest rate for the whole term. Fixed rate loans are less dependent on market conditions giving you confidence that you will meet your financial obligations.
There is always a possibility that interest rates may go down, leaving a fixed rate loan at a higher rate of interest compared to a variable rate loan.
Break and amendment costs
(Fixed rate loans only)
Break or amendment costs may apply if you repay part of or all of your fixed rate loan before the end of the agreed term, or if the terms of your fixed rate loan are amended before the end of the fixed term. Break or amendment costs only apply for fixed rate loans. There are no break or amendment costs for variable rate loans.
Discussed upon application.
Discussed upon application
Lending is typically offered on a secured basis. Please note that there will be additional fees when security is required. Fees will be discussed throughout the application process and will depend on your individual circumstances.
Security fees are the costs you’ll need to cover so that the Bank can secure the lending. For example, the cost of registering a Legal Charge over a business property.
If we are able to consider lending on an unsecured basis we will discuss this with you during the application process.
Max. loan to value
We can offer 70% of the market value in funding depending on the sector. For vacant possession properties, we can offer a maximum 80% of the value. Loan to value (LTV) is the ratio of bank funding to the value of the asset over which the Bank will be granted security.
Please note: Fixed rate lending terms are only available for lending of £250,000 or more.
All lending is subject to a satisfactory credit assessment and we will need your permission to carry out a credit check on your business and key individuals (directors and trustees).
Any property given as security, which may include your home, may be repossessed if you do not keep up repayments on your loan or other debts secured on the property.
You should not apply for an amount that you cannot comfortably afford to repay now and in the future to avoid the possibility of legal action.
If you would like to apply for a loan of £250,000 or more, please get in touch with one of our Relationship Managers. They will discuss your lending requirements with you and tell you what information you’ll need to send us.
To apply for the Charity and Co-operative Lending Fund, you’ll need:
Gather and send us the information
Gather the information listed in Step 1 and send it to the email address provided.
We’ll get in touch with you
We aim to get in touch with you within 2 business days of you sending us your information required. We might ask you for some additional information at this stage.
You’ll receive a decision from us
We aim to give you a decision within 10 business days of your full application being received. Occasionally, we may require additional information depending on your circumstances.
If you do not get through to a Relationship Manager straight away, they will contact you within 2 business days of your initial phone call or email to talk through your application with you and discuss next steps.
Benefit from flexible repayment terms to suit your business needs
Improve your business’ green credentials
Get support if you’re planning to grow your business or purchase your first commercial premises