TAMPA, Fla. — On the heels of its conversion from a federal to a state charter, the $5.5 billion Suncoast Credit Union has received a low-income designation from the National Credit Union Administration.
The credit union says the move was made to support the needs of the membership. The charter change, finalized early this year, allowed Suncoast to move from a multi-SEG-based field of membership to a community charter.
"With our recent state charter conversion, one of our goals was to open membership and better serve the credit union's lower income members," said Suncoast CEO Tom Dorety. "This designation will help us achieve that goal, as we'll be able to apply for grants to help finance affordable housing and work with migrant laborers."
The designation also exempts Suncoast from the member business-lending cap; the institution now has the option to accept deposits from nonmembers and offer secondary capital accounts.
For a credit union to receive the low-income designation, more than half of its members must qualify as low-income, earning a family income 80% or less than the median family income for the area in which they live.
"Low-income designation and CDFI certification are the building blocks for sustainable growth in communities in Florida and throughout the U.S.," said Cathie Mahon, president and CEO of National Federation of Community Development Credit Unions in New York.
As a member of the Federation, Suncoast will work with the Federation's consulting group, CU Breakthrough, on CDFI certification. The certification process will take approximately four to six weeks and involves a seven-step verification -- including target market, legal entity, primary mission, financing entity, accountability, development services and non-government entity.
