Credit unions bid for £4m development fund

Now in its second year, the £4 million fund (£1m per year) is run in partnership with the Credit Union Foundation.

Discussing the most recent tranche of applications, Sarah Porretta, head of financial inclusion at Edinburgh-based Lloyds, said: “Once again we are delighted to see so many credit unions across the whole of the UK recognise the value of this opportunity and apply to the fund to further strengthen their position. Credit Unions play a vital role in their communities, often helping those who need it most to take control of their money and access finance in a safe and responsible way.”

The £4m Credit Union Development Fund is a key commitment from Lloyds Banking Group’s Helping Britain Prosper Plan. This, together with the Group’s £1/4m investment in the pilot stage of the Archbishop of Canterbury’s Church Credit Champions Network, will help to significantly strengthen this important sector.

The Lloyds Banking Group Credit Union Development Fund features two kinds of grants:

Large awards – between £50,000 and £100,000 to provide a contribution to a credit union’s reserves and help remove barriers to growth and innovation.

Seed funding awards – between £10,000 and £20,000 to help credit unions make the changes they need to apply for a large award in a subsequent year or to pay for the costs of merger in certain circumstances.

Annette Warne-Thomas from the Credit Union Foundation added: “More than 1.8 million people are served by credit unions across the UK today. The Lloyds Banking Group Credit Union Development Fund will help further strengthen the sector, enabling credit unions to improve their resilience and sustainability to serve even more people in communities up and down the country.”

The successful credit unions will be announced later this year.