The ability to accept Secondary Capital is one of the benefits granted to Low-Income Designated Credit Unions to support their membership.  Now, as you assist your members in navigating the pandemic’s effects on employment, our economy, and a looming recession, is an opportune time to explore Secondary Capital.

For many credit unions, net worth is comprised primarily of retained earnings. Low-income credit unions, however, also have access to secondary capital, which on day one increases net worth dollar for dollar.

Secondary capital is most often utilized in the following situations:

  • Pandemic Response - to restore net worth to historical levels following the recent influx of deposits.

  • Growth - to support rates of growth that exceed a credit union’s ability maintain an optimal level of net worth.

  • Acquisitions - to offset capital dilution that results from the acquisition of a bank or a combination with a less well-capitalized credit union.

  • Fortify - to cushion a credit union’s capital in anticipation of recessionary conditions.

To learn more about how Secondary Capital can benefit your Credit Union and the application process please reach out to our team at: