Florida's largest credit union now carries the low incomedesignation

The 570,000-member, $5.6 billion Suncoast Credit Union,headquartered in Tampa, had been Suncoast Schools Federal Credit Union until it converted to a state charter on Jan. 1.

Under federal statute, a low income-designated credit union canaccept deposits from non-members, offer secondary capital accounts,be made exempt from the aggregate limit on member business lending,and apply for grants and loans from NCUA and other federalagencies.

Perhaps most significantly, a low-income designation can be akey part in being recognized as a community development financialinstitution by the U.S. Treasury Department. As a recognized CDFI,a credit union can apply for grants from the CDFI Fund to help itlaunch new product or service lines or supplement its capital.

“As you might know, we changed to a community charter earlierthis year and this is a natural follow on for our desire to focuson our community more effectively,” explained Suncoast CEO TomDorety. He added Suncoast would use the designation to apply forgrants to help finance affordable housing, work with migrantlaborers and generally better serve the credit union's lower incomemembers.

Dorety also said Suncoast would apply for recognition as a CDFI.If it attains the recognition, it will become the largest CDFI inthe country.

“I think this a very exciting moment,” said Cathie Mahon, CEO ofthe National Federation of Community Development Credit Unions,“when a credit union with the size and capacity of Suncoast hasbecome designated low income. We have already begun working withthem to hone their strategies for reaching to lower income andunderserved communities in Florida.”

She also called it a very good sign for credit unions generallyand suggested it would help convince other credit unions to examinethe designation for themselves.

Federally chartered credit unions can be recognized as lowincome credit unions if 50% plus one member of its membershipqualifies as low-income members.

Low-income members are defined, in part, as “members with afamily income 80% or less than the median family income for themetropolitan area where they live or national metropolitan area,whichever is greater,” according to the NCUA.

Dorety said Florida-chartered credit unions can be recognized aslow income if the NCUA certifies they qualify and the stateregulator authorizes the designation.

At press time, no one from the Florida Office of FinancialRegulation has yet commented on the qualifications state-charteredcredit unions have to meet to be recognized as low income creditunions.