Community Treasure Chest
Triodos Bank Announces First Loan after Ethical Account Closes Fully Subscribed within Two Weeks
Triodos Bank has closed a new account, fully subscribed, that links savers with disadvantaged communities within only two weeks of opening. The Community Investor Account generated extraordinary demand on its release raising £3 million. Ethical banking specialists, Triodos, has already made its first loan and is actively looking to lend the remaining finance to charities and enterprises that qualify under the rules of the Community Investment Tax Relief (CITR) scheme.
The first organisation to benefit from the new money is the Award Scheme Development and Accreditation Network (ASDAN), an educational charity based in Bristol. ASDAN promotes the personal and social development of learners from a variety of communities through the achievement of special awards. With 3,500 schools and colleges accredited across the UK, it has proved one of the most effective ways to develop and accredit wider skills and personal competences for thousands of young people.
According to ASDAN Chief Executive, Roger White, “The loan will make an enormous difference to the work of our organisation. Many small charities and businesses like ours just don’t realise that competitive loans are out there from institutions that are funded by people who share their values.”
“We have never seen a response like it,” said Triodos Bank Managing Director, Charles Middleton today. “In a climate of low interest rates and growing interest in ethical investment, the account simply made sense to hundreds of people. We have been inundated with calls. The challenge now is to lend the same money to the organisations and enterprises that need it most.”
Triodos Bank is actively looking to identify charities that could benefit from competitive loans, from homelessness initiatives to organisations helping with children with physical and learning disabilities. Under the rules of the scheme these charities or enterprises must work with disadvantaged groups or be based in deprived areas. Loans cannot exceed £250,000 and will need to be secured with property or guarantees.
The five year, fixed term account, offered savers tax relief worth 8.33% gross to higher rate taxpayers, or 6.41% gross for those paying tax at the basic rate, while keeping the strong social return offered by Triodos Bank. In addition, investors benefited from a variable interest rate currently at 2.1%. Triodos hopes to offer a second issue in 2004.
Organisations looking to take advantage of competitive loans, under the terms of the scheme, should call Triodos Bank free on 0800 328 2181.
Editor’s Notes:
For more information or to access quality, professional photography, please call James Niven on 0117 980 9721
Triodos Bank only finances enterprises which create social, environmental or cultural added value. Key sectors include organic food and farming, renewable energy, social housing, and fair trade. Transparency is a core value: customers are informed about the bank’s lending and can target their savings to particular areas of investment. A range of personal savings accounts is offered, and full banking services are available for businesses and charities. Triodos Bank is an independent bank founded in The Netherlands in 1980. Its principles and independence are protected through a special shareholding trust. The UK office opened in 1995 and is based in Bristol.
Details of the qualifying criteria under the terms of the CITR scheme are available on the Businesses link at www.triodos.co.uk.
