Charity and Co-operative Lending Fund

Supporting charities, co-operatives and social enterprises

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.

Up to 25 years

repayment terms, to give you more flexibility and control of your finances

Competitive interest rate

Variable rate or fixed rates available, subject to amount of borrowing

Bank of England Base Rate

5.25%, plus our agreed interest margin

Why apply?

  • Available for freehold purchases, capital spending or renovations
  • Supports green investments
  • Invest in fundraising resources to free up cash reserves
  • Interest-only options available based on a lower loan to value

Find out how to apply for the Charity and Co-operative Lending Fund.

Check eligibility for you and key individuals

  • 18 or over
  • A UK resident with a business or charity address in the UK
  • Authorised to borrow on behalf of the business or charity
  • A Co-operative Bank business current account holder registered as a charity, co-operative, credit union, community interest company or other not-for-profit organisation.

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.

How much can you apply for?

From £25,020

All businesses can apply for a loan from a minimum of £25,020.

Over £250,000

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.

Key information

Interest, fees and loan to value

Interest

Interest

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.


Arrangement fees

Discussed upon application.


Security fees

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.


“The Co-operative Bank really took the time to understand our charity’s vision and objectives.”

Read more about how KSIMC was able to grow their charity through the Charity and Co-operative Lending Fund

How to apply

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.

For loan applications of £250,000 or more

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.

For loan applications under £250,000

To apply for the Charity and Co-operative Lending Fund, you’ll need:

  • your Co-operative Bank business current account details, including account name, account number and sort code (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)
  • information on your tax status
  • details of existing business borrowing
  • personal details and details of assets, liabilities, and income and expenditure for all individuals registered and/or with authority to transact on your existing Co-operative Bank business current account.
  • your full annual accounts from the past 3 years
  • bank statements from the last 6 months
  • 12-month cash flow forecast (if available)
  • aged receivables list/debtor book (if available).

Send the information gathered in Step 1 as PDF attachments to the email address below. We’ll get back to you on next steps (see Application timeline below):

SMELendingRequests@co-operativebank.co.uk

Application timeline

for applications under £250,000

  • Variable

    Gather and send us the information

    Gather the information listed in Step 1 and send it to the email address provided.

  • Within 2 business days

    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.

  • Within 10 business days

    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.

Application timeline

for applications over £250,000

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.

Not found what you were looking for?

Variable rate loan

Benefit from flexible repayment terms to suit your business needs

  • Apply from £25,020 to £10m

  • Competitive interest rate or interest-only options available

  • 1 to 20 year terms available

Renewable energy funding scheme

Improve your business’ green credentials

  • Boost your business’ energy efficiency

  • Get funding for up to 100% of eligible project costs

  • Extensive list of eligible products and technologies

Commercial mortgages image

Commercial Mortgage

Get support if you’re planning to grow your business or purchase your first commercial premises

  • Borrow up to £10m

  • Finance residential investment portfolios or commercial properties

  • Repayment options & terms discussed on application