Total ‘low-income’ FCUs rises to 2,002
Dec. 20, 2013 – NCUA announced Thursday that 2,002 federal credit unions now have the agency’s “low-income” designation and are eligible for all the benefits that designation bestows.
For a credit union to get this designation, a majority of the institution’s membership must meet low-income thresholds based on 2010 census data. With a low-income designation from NCUA, the credit union:
- is exempt from the statutory 12.25 percent-of-assets cap on member business lending;
- is eligible for Community Development Revolving Loan Fund grants and low-interest loans;
- may accept deposits from non-members; and
- is authorized to obtain supplemental capital.
NCUA said the 2,002 low-income credit unions have a combined total of nearly 20 million members and $176 billion in assets. They range from the very small to those institutions having more than $1 billion in assets.
“Low-income credit unions play an important role in their communities,” said NCUA Board Chairman Debbie Matz, “and the growth in the number of credit unions with the low-income designation could provide additional opportunities for investment in local economies.”
LICUs are also eligible for certification as community development financial institutions under Treasury’s CDFI Program.