It stands at the corner of Piazza San Giovanni and via Calzaioli; tradition holds the site near the Baptistry of Florence was donated by a benefactor.
The Compagnia della Misericordia, or "Company of Mercy", was concerned with the transport of the sick, burial of the indigent dead, as well as the care of orphans.
This group focused on the housing of the indigent, and also cared for pilgrims and travellers at their Ospedale di Santa Maria alle Fonti, nicknamed "del Bigallo", at Fonteviva.
[3] Its two arched bays are richly decorated with bas-reliefs of prophets, angels, the Virtues, a Christ giving the benediction and an Ecce Homo.
In 1697, the arches were walled-up in order to provide more space for the oratory that is attached to the loggia; the masonry was removed in 1889, revealing the long-hidden decoration.