Designation of Low-Income Status (APO/FPO Addresses)

Status

Approved by NCUA, May 7, 2020

 

Our Position

DCUC will continue to offer strong support for changes in NCUA regulations that allow APO/FPO address to be included in Low Income Credit Union designations.

 

Background

To qualify as a low-income credit union (LICU), a majority of your membership must meet low-income thresholds defined in the NCUA Rules and Regulations. In general, for members to meet the low-income thresholds, their income must be at or below 80 percent of comparable median family income or median earnings for individuals in their geographic area, their state, or the nation.

A credit union with a low-income designation has access to many benefits that allow them to better serve their membership, especially those that may be traditionally un- or under-banked. Benefits include the ability to:
  • Raise supplemental capital that counts toward net worth;
  • Accept non-member deposits from any source;
  • Make member business loans beyond the statutory cap;
  • Apply for grants and low-interest loans from the National Credit Union Administration’s Community Development Revolving Loan Fund.

By allowing credit unions to include APO/FPO addresses in this calculation, it may push defense credit unions who are close to the 50% + 1 threshold the boost they need to qualify.

 

Press Releases

DCUC Works With NCUA to Add Military Members to LICU Designation (May 7, 2020)

 

In the News - Inclusion of Military in LICU

Item Name Posted By Date Posted
Lease exemption for credit unions on base is well  Link Administration 7/30/2020
Banks contradict themselves in NCUA argument Link Administration 7/30/2020
NCUA OK’s Counting Qualified Service Members on... Link Administration 5/8/2020
NCUA Changes Low-Income Designation Rules to... Link Administration 5/8/2020
ICBA slams credit union regulator for pushing... Link Administration 5/8/2020
DCUC Has Suggested Changes for NCUA, Treasury... Link Administration 5/7/2020
How More Military CUs Could Become LICUs Link Administration 5/7/2020

Letters & Comments - Inclusion of Military in LICU

Item Name Posted By Date Posted
Letter to NCUA - Inclusion of Military in LICU PDF (637.02 KB) Administration 5/8/2020
Letter to SASC-NCUA Inclusion of Military in LICU PDF (1.03 MB) Administration 5/8/2020
Letter to DoD - NCUA Inclusion of Military in LICU PDF (1.04 MB) Administration 5/8/2020
Letter to HASC- NCUA Inclusion of Military in LICU PDF (1.03 MB) Administration 5/8/2020
Letter to NCUA on Senate Banking Committee's CTA PDF (1011.22 KB) Administration 5/7/2020

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