EDINBURGH, Scotland—The Scottish government has released two new funding programs to help the country’s credit unions during the coronavirus crisis.
The dedicated funds are designed to help to ensure the sector stays afloat and helps vulnerable people deal with the financial implications of the outbreak, according to The Herald.
The Third Sector Resilience Fund and the dedicated Credit Union Resilience Loan Fund provide practical support of more than £20 million to credit unions, many of which are already feeling the strain as members struggle to meet loan repayments.
The Association of British Credit Unions (ABCUL) welcomed the funding packages and praised the joined-up response between credit unions and the U.K. and Scottish Governments.
Online Sessions
“ABCUL has hosted online conference sessions with credit unions from all over Britain to identify issues of emerging concern and ensure these are addressed and the business strengthened to deliver essential financial support to members and to staff,” said Robert Kelly, CEO of ABCUL. “There have been tremendous examples of partnership working. The voices of our credit union leaders are being channeled to government in a robust and effective way and the response has been hugely encouraging thus far.”
The Credit Union Resilience Fund will offer interest-free loans of between £50,000 and £250,000, repayable over eight years. The Third Sector Resilience Fund provides grants up to £100,000, as well as interest-free loans starting from £50,000.