Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), and Low-Income Credit Unions (LICUs) are credit unions with statutory or regulatory designations intended to recognize and encourage their missions to improve access to financial services in historically underserved areas.
The National Association of State Credit Union Supervisors (NASCUS) is undertaking an initiative to raise awareness of these designations and the unique challenges these institutions face, dedicating advocacy resources to address those challenges and promote enhancements of the designations, and educating state regulators and the importance of these designations and how efforts at the state level can help them thrive.
Additionally, NASCUS leads a CDFI/MDI/LICU Committee. This Committee focuses on issues specific to these institutions, identifies barriers each faces, and proposes solutions to strengthen each designation. They provide education and resources to state regulators specific to each designation surrounding public policy goals, as well as powers and authority under NCUA.
On Sept. 3, 2025, Filene, in partnership with CU Strategic Planning (a Callahan Company), released a new study on CDFI credit unions, highlighting “hard-won lessons” and practical tips for those still in the early stages of their CDFI journey. Read thier study here: Amplifying Your Credit Union’s Mission: Financial and Community Impacts of Being a CDFI
*The criteria and information below are subject to change with policy changes at the federal level.
Community Development Financial Institutions (CDFIs)
Designation Criteria
- Provided by the CDFI Fund — A part of the U.S. Treasury
- Must meet 7 eligibility tests to obtain CDFI Certification
Obtaining Designation
On December 7, 2023, the Fund released the revised Certification Application. For NEW CDFI applications, the application portal will be opened on December 20, 2023. EXISTING CDFI’s must reapply for certification using the revised application beginning August 1, 2024, and NO LATER than 11:59 pm ET on December 20, 2024. To obtain CDFI a credit union must meet each of the following certification criteria at the time a CDFI Certification Application is submitted to the CDFI Fund:
- Be a legal entity
- Have a primary mission of promoting community development
- Be a financing entity
- Primarily serve one or more Target Markets1 i.e., Investment Area, Low-Income
Targeted Population, or Other Targeted Population - Provide development services in conjunction with financing activities
- Maintain accountability to its defined Target Market; and
- Be a non-government entity and not be under the control of any government entity
Minority Depository Institutions (MDIs)
The National Credit Union Administration (NCUA) has a statutory mandate under Section 367 of the Dodd-Frank Act that requires the NCUA to establish a program to preserve credit unions designated as minority depository institutions and to submit an annual report to Congress on the Agency’s efforts to comply with this mandate.
Designation Criteria
- More than 50 percent of its current members are Asian American, Black American,
Hispanic American, or Native American - More than 50 %of its current and eligible potential members combined are
Asian American, Black American, Hispanic American, or Native American; and - More than 50% of its current board members are Asian American, Black American,
Hispanic American, or Native American - Obtaining Designation
- Credit unions “self-designate” as MDIs by answering the minority questions on the CUOnline Profile.
- Respond “yes” to both “Minority Depository Institutions Questions” in the Profile
- The MDI program is managed by NCUA’s Office of Credit Union Resources and Expansion (CURE)
- NCUA IRPS 13-1
Low-Income Credit Union (LICU)
Designation Criteria
Low-income designation: Provided by NCUA to credit unions with a predominantly low-income threshold.
At least 50.01% of members must meet a certain low-income threshold; Low-income members are those members whose family income is 80% or less than the median family income for the metropolitan area where they live or national metropolitan area, whichever is greater, or those members who earn 80% or less than the total median earnings for individuals for the metropolitan area where they live or national metropolitan area, whichever is greater.
Obtaining Designation
To qualify as a low-income credit union, a majority of the credit union’s members (50.1%) must meet certain low-income thresholds, based on data from the U.S. Census Bureau and the requirements of
701.34 (§741.204 for SCUs).
Federally insured credit unions that meet the eligibility criteria can receive the low-income designation. However, not all benefits may be applicable to state charters.
State-chartered credit unions should contact their state supervisory authority to determine individual credit union low-income designation criteria and benefits. To determine eligibility: NCUA‘s Office of Credit Union Resources and Expansion (CURE) – [email protected] or 703.518.1150.