Charity Bank has approved almost a third more loans to the sector than it did last year, and expects the level of drawn loans to top £40m for the first time in July.

Announcing its results ahead of its AGM on 19 May, Charity Bank reported that it made loans worth £35.8m in 2009 – a 700 per cent rise since its first year of operation, 2002.

Deposits also grew in the year, up 25 per cent to £44m, as around 500 individuals and charities opened new deposit accounts during the year.

Malcolm Hayday, the Bank’s chief executive, said that despite the ailing economy and the reluctance of high street banks to lend, Charity Bank had been able to increase its funding to charities and social enterprises and had “ambitious plans” to boost it further still.

In response to calls from New Philanthropy Capital and others for organisations in the sector to improve the reporting of the social impact of their activities, Charity Bank has published its first social impact study of its lending activity.

Key findings include:

• 88 per cent of borrowers found that a Charity Bank loan had made a major or significant contribution
• 69 per cent secured additional funding as a result of the Charity Bank loan]
• 81 per cent of borrowers saw a major or significant improvement in facilities, improving their ability to provide services.