ALEXANDRIA, Va. (9/13/12)--The number of credit unions with low-income designations has increased by 553 following recent National Credit Union Administration (NCUA) outreach efforts, the agency said on Wednesday.
The NCUA in August notified 1,003 credit unions, indicating they are eligible for the low-income credit union (LICU) designation. Notified credit unions were offered a streamlined LICU application process, and the 553 credit unions noted above accepted the NCUA designation.
The addition of these new LICUs brings the total number of LICUs to 1,740.
The LICU notification initiative was incorporated into a relief and recovery package for drought-stricken states announced at the White House in early August, and 260 of the credit unions that accepted their designation were headquartered in drought-impacted states.
The NCUA in a release said the new LICUs serve 5.9 million members and hold more than $49 billion in assets, combined. According to the NCUA, 80% of these new LICUs have less than $100 million in assets, and the median asset size of these new LICUs is $24.6 million.
Credit unions that did not respond to this NCUA notification may still accept the LICU designation. They will have 30 days to do so, the NCUA said.
The LICU designation brings benefits that include the ability to accept supplemental capital and an exemption from the member business lending cap under certain circumstances. LICU-designated credit unions are also eligible for Community Development Revolving Loan Fund grants and low-interest loans and may accept deposits from non-members.