NCUA announced that it is expanding its approach when considering military personnel in determining whether a credit union qualifies for the low-income designation.
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, the agency announced Thursday.
There are several benefits for credit unions that carry low-income designations, including exemptions 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, according to NCUA.
More information about NCUA’s updated methodology and the new options credit unions have to incorporate their military members into the low-income designation process will be detailed in an upcoming letter to credit unions, the agency’s press release stated.
The full press release can be accessed on NCUA’s website.