ALEXANDRIA, Va. (UPDATED: 8/7/13, 10:15 A.M. ET)--The National Credit Union Administration today released numbers to mark the one-year anniversary of its low-income credit union (LICU) initiative, with NCUA Chairman Debbie Matz noting that "the number of designated credit unions has grown significantly, creating the potential for greater community investment and access to financial services in underserved communities."
"Since last August, 821 federally insured credit unions, with 11 million members and $101.8 billion in assets, have accepted the low-income designation. There are now 1,961, two-thirds of which are federal credit unions, with the low-income designation. The most recent data show these credit unions have 17.8 million members and assets of $157.6 billion. By streamlining the designation process, we have been helping more credit unions help more people," Matz said.
To qualify as a LICU, a majority of a federal credit union's membership must meet low-income thresholds based on 2010 Census data. In addition to the exemption from the 12.25% statutory cap on member business lending for credit unions, other advantages derived from the LICU designation include:
- Eligibility for Community Development Revolving Loan Fund grants and low-interest loans;
- Ability to accept deposits from non-members; and
- Authorization to obtain supplemental capital.
For the full NCUA LICU release, use the resource link.