The Credit Union Development Fund was launched in 2014 with the aim of helping credit unions grow. Initially a four-year project, it allocated £1m each year. So far it has helped 66 credit unions lend over £20m to their members, with this number set to exceed £25m by the end of 2018.
The addition £1m will enable 13 credit unions to apply for large grants up to £100,000. A further eight credit unions will receive small grants between £10,000 & £20,000. The larger grants will be allocated to credit unions aiming to remove barriers to growth and innovation while smaller grants will be used to help credit unions invest in resources and activities to improve sustainability.
Robin Bulloch, managing director, Lloyds Bank & Bank of Scotland, said: “As part of our ambition to be the leading supporter of the UK’s credit unions, we are contributing an additional £1m to provide sustainable lending to even more credit unions and, in turn, their members. Over 66 credit unions have benefited from the fund’s support to date, helping over 400,000 members across the UK, underscoring our commitment to Help Britain Prosper.”
John Glen, economic secretary to the Treasury, added: “I am committed to promoting the benefits of credit unions. There are over 400 of them across the country, serving 1.9 million members, and each plays a vital role for the people and community they serve. This funding from Lloyds is fantastic news for the sector and I hope that other banks follow by example.”