NCUA expanding approach on low-income designated credit union

As the country recognizes the contributions and sacrifices of service members during National Military Appreciation Month, the NCUA is expanding its approach when considering military personnel in determining if a credit union qualifies for the low-income designation per an announcement May 7.

To qualify as a low-income credit union, a majority of the credit union’s membership must meet certain low-income thresholds, based on data from the Census Bureau and requirements outlined in the NCUA’s Rules and Regulations.

Under the new approach, military personnel will now be considered in a similar manner as students attending colleges, universities, vocational or technical schools when the NCUA evaluates a federally insured credit union’s low-income designation.

Active-duty military personnel constitute a mobile population with frequent transfers, both domestically and internationally, and often list Army/Air Post Office (APO) or Fleet Post Office (FPO) mailing addresses. Prior to the change in the designation’s methodology, the NCUA’s income assessment tool only geo-coded the incomes of members with physical street addresses. As a result, service members using APO or FPO addresses were omitted from the agency’s evaluation.

There are several benefits for credit unions that carry a low-income designation including an exemption from the statutory cap on member business lending, eligibility for grants and loans from the Community Development Revolving Loan Fund, the ability to accept deposits from non-members, and the authorization to obtain supplemental capital.

Additional information about the updated methodology and the new options credit unions now have to incorporate their military members into the low-income designation process will be detailed in an upcoming Letter to Credit Unions.

Credit unions should contact the NCUA’s Office of Credit Union Resources and Expansion at or 703.518.1150 for additional information.

Written by
View all articles

About Us

The League of Southeastern Credit Unions & Affiliates represents nearly 300 credit unions throughout Alabama, Florida, and Georgia. It has a combined total of almost $200 billion in assets and 12.4 million members. LSCU provides advocacy, compliance services, education and training, cooperative initiatives, and communications.

Social Channels

Follow us on all major social media platforms.