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Help available for starting
a credit union in a low-income area
By Robbie Woliver •
Bankrate.comSM
 If
your potential group of credit union members is considered to be
low-income, the National
Federation of Community Development Credit Unions was established
to serve and represent financial cooperatives in low-income communities.
To secure the low-income designation, a credit
union must be able to document that a majority of its member households
earn less than 80 percent of the national median household income.
That household standard was $26,457 during 1996; and $28,161 in
1997.
The NFCDCU has assisted many groups in organizing
new credit unions in low-income communities in response to branch
closings and "upscaling" by commercial banks. It can be reached
at 1-212-809-1850 or by writing to 120 Wall Street, 10th Floor,
New York, NY 10005-3902.
The principal advantage of low-income designation
is two-fold: A credit union can then accept deposits from nonmembers
and may participate in National
Credit Union Administration's revolving loan fund for community
development credit unions.
The NCUA has established an Office of Community Development Credit Unions: call toll-free 1-800-827-6282
or write to 1775 Duke Street, Alexandria, VA 22314-3428.
Robbie
Woliver is a freelance writer based in New York
To comment on this story, please e-mail the
Bankrate.com editors
-- Posted: March 1, 2000
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