Lloyds Bank awards almost £1m funding to support credit unions

Lloyds Banking Group has announced funding packages for a range of credit unions, including several throughout the region.

Awards range from £100,000 to £5,800.

Among the recipients, Manchester Credit Union has received £100,000, Oldham Credit Union benefits from a £50,000 award, and South Manchester Credit Union has been given £19,280, which it said will fund costs and equipment for a business development role.

It added that the money will resource the credit union to further extend the reach of services within their local communities.

South Manchester Credit Union chief executive Sheenagh Young said: “As a successful community credit union we are looking forward to applying our award from Lloyds Banking Group to further raise our voice and encourage a deeper appetite for credit union services in our local communities.

“We have focused strongly on marketing over the last year and have been building our presence on social media, as well as strengthening our online services offer.

“This award enables us to resource a business development role to build partnerships with local employers to open up easier access to credit union services for their employees.”

South Manchester Credit Union is among 21 credit unions across the country that are benefiting from the grants.

Lloyds committed to provide £1m each year for four years and today’s award is the fourth wave of funding to be released.

In addition, Lloyds have also announced they will commit a further £1m of funding in 2018 on top of the £4m they have already delivered.

The investment between 2014-18 should enable the credit union sector to lend an additional £25m to their members.

Nick Williams, group ambassador for the North of England at Lloyds Banking Group said: “Credit unions play a crucial role in helping people access finance in a safe and responsible way.

“This support means that more consumers who need small loans have another lending option available to them.

“Over 66 credit unions have benefited from the fund’s support to date, helping over 400,000 members across the UK, and underscoring our commitment to help Britain prosper.”

Liz Barclay, Chair of the Credit Union Foundation, added: “The partnership with Lloyds Banking Group has been transformational for the foundation and is providing support for the credit union sector that is unparalleled.

“From funding websites that allow new digital services for members, to building capital reserves that are supporting significant growth, the development fund is supporting credit unions, large and small, to achieve sustainability.”