ALEXANDRIA, Va. — The number of credit unions classified as "low income" continues to rise.
More than 2,000 institutions across the country are now certified as low-income CUs (LICUs), according to a statement released Thursday from NCUA.
All told, there are now 2,002 LICUs across the country with a total of nearly 20 million members and assets of $176 billion.
"Low-income credit unions play an important role in their communities," said NCUA Chair Debbie Matz, "and the growth in the number of credit unions with the low-income designation could provide additional opportunities for investment in local economies. These credit unions can promote greater financial security for their members by providing loans to support a small business, purchase a house or send family members to college."
The announcement caps off a 15-month period during which the federal regulator has massively expanded the LICU program by streamlining the application process for credit unions to receive low-income status.
Since August 2012, more than 900 CUs have been granted LICU status, nearly doubling their numbers in that time span. Since then, the agency has also worked with NASCUS and state regulators to restructure the approval process for federally insured state-chartered CUs.
To secure low-income status, a majority of a FCU's membership must meet low-income thresholds based on data from the 2010 census. Those CUs that receive that designation are exempt from the 12.25% cap on member business lending; eligible for low-interest loans and Community Development Revolving Loan Fund grants; are authorized to obtain supplemental capital; and may accept deposits from non-members.
NCUA is scheduled to hold a webinar discussing LICUs Jan. 15.
