NEW YORK (9/25/12)--The National Federation of Community Development Credit Unions is offering a free webinar at 2 p.m. (ET) today on the benefits and opportunities that low-income designation provides eligible credit unions.
In August the National Credit Union Administration (NCUA) informed another 1,003 of the nation's 7,200 credit unions of their low-income eligibility, and expedited the application process to increase credit union participation in a federal relief and recovery package for drought-stricken states.
As a result, a month after the announcement, 553 federal credit unions nationwide accepted the designation. The newly designated low-income credit unions (LICU) serve 5.9 million members and manage more than $49 billion in combined assets.
Today, 1,721 LICUs with combined assets of $100 billion provide services to 12.4 million predominantly low income consumers. If every eligible credit union accepts their designation, LICUs would have combined assets of $140 billion, providing affordable financial services to almost 17 million consumers, said the federation.
The LICU designation provides certain privileges aimed at expanding a credit union's capacity to meet the needs of their financially vulnerable members. The benefits include:
- The authority to accept supplemental (secondary) capital;
- Exemption from the member business lending limitation of 12.25% of assets;
- The right to accept non-member deposits up to the greater of $3 million or 20% of total shares; and
- Access to the NCUA's Community Development Revolving Loan Program, which provides loans and technical assistance grants.
To register for the webinar, use the link.