The SNP Government has allocated £20 million through a Credit Union Resilience Loan Fund to help Scotland’s credit unions continue supporting those in need during the current coronavirus crisis.
Credit unions are suffering financially as members struggle to meet loan repayments due to the economic impact of the virus.
The fund will be managed by Social Investment Scotland, who in order to make sure the fund is able to support as many credit unions as possible, will receive applications during a fixed window, making initial allocations thereafter.
Applications can be made until 9am on Tuesday 14th April via this link.
Credit unions can apply for an interest-free loan of between £50,000 and £250,000, repayable over a term of up to eight years. The loan will reduce by 20% from year four onwards and be repaid when the credit union is able to repay it.
No security is required for the loan and there is no arrangement fee.
The Association of British Credit Unions Limited (ABCUL) has welcomed the funding.
Robert Kelly, chief executive of ABCUL, said that there had been tremendous examples of partnership working and added:
“The voices of our credit union leaders are being channelled to government in a robust and effective way and the response has been hugely encouraging thus far.”
Kenneth Gibson MSP commented:
“Many people in North Ayrshire are members of credit unions such as Ayrshire-based 1st Alliance Credit Union and Ayrshire Credit Union.
“I have doubt that this funding will enable our credit unions to continue supporting their members throughout this pandemic.”