Lloyds Banking Group has today announced additional funding to support the UK’s credit union sector. The Group is awarding a further £1 million in grants to 23credit unions through the Lloyds Credit Union Development Fund.
Established in 2014, the Lloyds Credit Union Development Fund is run in partnership with the Credit Union Foundation. The Fund is designed to strengthen the financial position of credit unions, and give them the capacity to develop new strategies for sustained and effective growth In addition, with support from the Fund, credit unions are able to provide much needed responsible lending and financial support for some of the most vulnerable people across Britain.
Over the past five years, Lloyds Banking Group has contributed £5 million to the Fund enabling it to make more than 100 awards to 85 credit unions, helping them to lend an additional £23 million to their members. This number is set to significantly exceed the Fund’s original £25 million target by the end of 2019.
The Fund features two kinds of grant: large awards up to £100,000 and smaller seed grants of between £10,000 and £20,000. This year, a total of 17 credit unions will benefit from the large awards, which are intended to help remove barriers to growth and innovation and provide a real contribution to the credit union reserves to help them provide more financial support to their communities. Six seed grants have been awarded to help invest in resources and activities, such as IT, to help them expand and improve their services.
Robin Bulloch, Managing Director, Lloyds Bank & Bank of Scotland at Lloyds Banking Group said: “As part of our ambition to be the leading supporter of the UK’s Credit Unions, we are contributing a further £1 million to provide additional, sustainable lending to even more credit unions, and in turn their members, underscoring our commitment to help Britain prosper.”
Lord Kennedy of Southwark, Chair of the Credit Union Foundation, said: “The Lloyds Credit Union Development Fund has enabled the Credit Union Foundation to make a huge difference to the growth and sustainability of credit unions across the country. It is testament to the success and impact of the initiative that we were able to extend it for a fifth year taking the total Lloyds Banking Group investment to £5 million. Everyone at the Foundation and among the successful credit unions is hugely grateful to Lloyds Banking Group for their vision and commitment in making this transformational investment in our future.”
John Glen MP, Economic Secretary to the Treasury, said: “There are over 400 credit unions on our high streets, and each plays a vital role in the lives of people across the country. The government is committed to championing the fantastic work that credit unions do, and it’s great to see that Lloyds Banking Group continues to do its part too, by providing a further £1 million to help credit unions grow.”