What do 'CDCU,' 'CDFI,' AND 'LID' stand for?

Definitions for the CU industry acronyms.

November 25, 2014

Community development credit union (CDCU) is a credential provided by affiliation with the National Federation of Community Development Credit Unions. CDCUs are usually low-income designated and CDFI-certified, dedicated to serving and revitalizing low-income areas. The Federation provides capital, knowledge, expertise, and partnerships to help its members better serve their markets.

Community development financial institution (CDFI) certification comes from the CDFI Fund, an agency of the Treasury Department. To become CDFI certified, credit unions must have a primary mission of promoting community development in underserved target markets. and providing development services to borrowers and prospective borrowers. CDFI credit unions can apply for financial and technical assistance grants and also have access to funds, training, and other resources through federal programs reserved for certified CDFIs.

Low-income designated (LID) credit unions is an NCUA designation. LID credit unions must have a majority of members (50% plus one member) who qualify as low-income (defined in Section 701.34 of the NCUA Rules and Regulations). These members must earn no more than 80% of the median family income for the metropolitan area where they live, or the national metropolitan area, whichever is greater. LID credit unions can accept nonmember deposits up to a certain limit, accept secondary capital, and are exempt from the 12.25% member business lending cap.