To qualify as a low-income credit union, a majority of the credit union’s membership (50.01 percent) must meet certain low-income thresholds, based on data from the Census Bureau and requirements outlined in NCUA’s Rules and Regulations.
What Are the Benefits to the Designation?
- An exception from the statutory cap on member business lending, which expands access to capital for small businesses and helps credit unions to diversity portfolios;
- Eligibility for grants and low-interest loans from the Community Development Revolving Loan Fund;
- Ability to accept non-member deposits from any source; and
- Authority to obtain supplemental capital.
Who Can Qualify for the Designation?
All federally insured credit unions that meet the eligibility criteria can receive the designation. However, some state-chartered credit unions may not be afforded all of the designation’s benefits if their state’s laws to not allow them.
For assistance in determining whether your credit union qualifies for a low-income designation, contact us at DCAMail@ncua.gov or 703.518.6610.