A CHARITY which works to end homelessness in Darlington has been able to buy a home of its own thanks to a £105,000 bank loan.

First Stop Darlington, which was founded in 1998, used a loan from the Charity Bank to buy its Houndgate premises.

The charity received grants and drew on cash reserves to fund the £50,000 deposit for its new building, which replaced its old Tubwell Row headquarters.

The remainder came in the form of a loan from Charity Bank, which helps charities, social enterprises and community groups.

First Stop provides one-to-one support, guidance and advice to people of all ages, ranging from those at risk of homelessness and/or eviction through to those sleeping rough, offenders, victims of substance abuse, domestic violence victims and perpetrators and those with mental health issues.

Chief executive Tracy Freeman said the loan from Charity Bank means First Stop is saving about £10,000 a year that would otherwise have been spent on rent and other operating costs.

She said: “Owning our own premises means we can reduce our costs and redirect that money to helping our service users.

"While we could fund the deposit on the building we found, we needed to borrow twice as much again.

"Charity Bank immediately understood the issue, recognising that we would be able to increase our social impact if we owned rather than rented."

In 2012/13, First Stop helped more than 600 people find accommodation or deal with the threat of eviction.

It also helped nearly 200 improve their employment prospects.

Its youth homelessness prevention service helped more than 50 young people under 21 remain in their homes or to find suitable accommodation and support to live independently.

A further 23 adults with multiple complex needs were helped to cope with extensive complex issues which affect their ability to cope in society, such as mental health issues, behavioural problems, substance abuse and offending.

Jeremy Ince, Charity Bank’s regional lending manager, said: “We exist to finance social sector organisations so that they can increase their social impact sustainably.

"It was very clear to me that First Stop Darlington was not only already having a significant impact, but its trustees were committed to growing that impact.

"They demonstrated this commitment and also convinced me that they had sufficient financial acumen for the long-term.

"I was therefore delighted to recommend this loan."

First Stop Darlington's annual meeting will be held at its headquarters on Friday, September 26, from noon.