Sept. 5, 2012 – Credit unions notified by NCUA last month about their eligibility for the agency’s low-income designation – which brings a number of regulatory benefits – should tell the agency by Sept. 10 if they want the designation to take advantage of streamlined approval.
NCUA announced last month that 1,003 credit unions that didn’t have the
designation already were eligible for it. The agency wrote the
institutions and invited them to respond “yes” by Sept. 10 to the question of whether they want the designation. Once they do that, the designation
will take effect immediately.
NCUA rules provide that low-income designated credit unions:
- are exempt from member business lending limits;
- are eligible for Community Development Revolving Loan Fund grants and low-interest loans;
- are authorized to accept deposits from non-members; and
- are authorized to obtain supplemental capital.
NCUA plans to look at eligibility for this designation each quarter and will notify credit unions if they meet the requirements; more details are provided in a fact sheet on the agency's website. NCUA rules note that credit unions should tell the agency if they want the designation within 30 days of being notified they are eligible.
Credit unions that miss the above-noted Sept. 10 deadline can contact NCUA for LICU approval.