An NCUA status for a federal credit union when a majority of its members are low-income by the rule's test. It lifts the cap on member business loans.
NCUA designates a federal credit union as low-income when a majority of its members are low-income members. The rule defines those as members whose family income is 80 percent or less of the median family income for the metropolitan area where they live, or the national metropolitan area if that is greater, or who earn 80 percent or less of total median earnings for individuals on the same basis. Students enrolled in a college, university, high school or vocational school count as well. NCUA notifies a credit union that qualifies, and the credit union has 90 days to say in writing that it wants the designation.
The status matters to a business borrower for one reason above the rest. A credit union with the designation is exempt from the aggregate limit on member business loans, so it is not held to 1.75 times net worth. The limit on loans to one borrower still holds.
The designation also changes the capital count. For these credit unions, certain subordinated debt is included in net worth, which can raise the dollar limits that are measured against net worth.
How it shows up in the data here
This site does not carry low-income designation. It is not among the 5300 fields used here, so no filter or lender page shows it. A credit union with a large commercial book relative to its net worth may hold the designation or another exemption, but the data cannot confirm that. Compare lending volume in credit union commercial loans made and ask the lender.
Go further
- Credit union commercial loans made: Ranked by commercial loans granted or purchased in the first half of 2026.
- Search credit unions: Every credit union row, with filters.
- How to place a business loan with a credit union: Credit unions make business loans, and some make a lot of them. Three things are different from a bank: the borrower must be a member, most credit unions work under a cap on business loans, and the limit to one borrower is set against net worth.
- A credit union lender's guide to working with brokers: Brokers bring loans a credit union would not otherwise see. Taking them well means four checks before credit: can the borrower join, is there room under the cap, is the loan inside the limit to one borrower, and who pays the broker.
Related terms
- Member business loan cap: The legal ceiling on a credit union's member business loans: 1.75 times its net worth, or 1.75 times the net worth a well capitalized credit union must hold, if that is less.
- Member business loan (MBL): A credit union's business-purpose loan to one of its own members. The total of these loans is capped by federal law; loans to non-members are counted separately.
- Community development financial institution (CDFI): A lender the Treasury's CDFI Fund has certified as having a primary mission of community development and serving a defined target market.
- Net worth ratio: A credit union's net worth divided by its total assets, as a percentage. NCUA treats 7 percent or more as well capitalized and 6 percent as adequately capitalized.
- Credit union: A member-owned cooperative lender. It lends to the people and businesses inside its field of membership and files a call report with NCUA every quarter.
Sources
Plain definitions for orientation, not legal, tax or credit advice. A lender's own policy decides what it will do.