A National Credit Union Administration initiative has resulted in a jump in the number of credit unions to obtain the federal agency's low-income designation, which is based on the income levels of a majority of those credit unions' members.

Two months after NCUA informed 1,003 federal credit unions of their eligibility to become a low-income credit union, which provides certain financial benefits, 676 of them have accepted. As a group, the newly designated LICUs serve more than 7.7 million members and manage more than $66 billion in combined assets.

With all of the new acceptances during the last two months, the total number of low-income designated credit unions has risen to 1,874.

Two Spokane-area credit unions, Amicus Federal Credit Union and Sears Spokane Employees Federal Credit Union, are listed by the NCUA as having the low-income designation.

Amicus, formerly Spokane Catholic Credit Union, is located at 6103 N. Astor, on Spokane's North Side, and has about 1,090 members, according to information submitted to the Journal of Business for a credit unions list published Aug. 2. Sears Spokane credit union is located in NorthTown Mall, at 4700 N. Division, and has 810 members, the list reported.

NCUA Board Chairman Debbie Matz says, "Two-thirds of the newly identified eligible credit unions have accepted in the last two months. By streamlining the application process, we are expanding opportunities and access to capital for millions of credit union members."

To qualify as a LICU, a majority of a credit union's membership must meet low-income thresholds based on 2010 Census data. The low-income designation means a credit union is eligible for Community Development Revolving Loan Fund grants and low-interest loans, and also can obtain supplemental capital. Such credit unions are exempt from the 12.25 percent statutory cap on member business loans and can accept nonmember deposits from any source.

Matz says the NCUA initiative was part of President Obama's relief and recovery package to help 27 drought-stricken states. To date, 326 of the federal credit unions that accepted the LICU designation are based in states affected by the drought. Those credit unions represent 51 percent of new LICU assets and 52 percent of new LICU members.

More than 80 percent of the newly designated LICUs have assets of less than $100 million, and the median asset size of new LICUs is $23.8 million.