NCUA awards nearly $75,000 in MDI grant pilot
A mentoring grant from the National Credit Union Administration will pair three low-income credit unions who are designated as minority depository institutions with three larger credit unions.
The grants are through NCUA's pilot MDI mentoring program, which aims to establish relationships between low-income designated and small MDI mentees. Nearly $75,000 will be dispersed across the three sets of credit unions.
New York, N.Y.-based Fidelis Federal Credit Union will join forces with Neighborhood Trust Federal Credit Union, which is also based in New York. District Government Employees Federal Credit Union in Washington D.C., will be mentored by Raleigh, N.C.-based Local Government Federal Credit Union. Southern Teachers and Parents Federal Credit Union of Baton Rouge, La., will partner with EFCU Financial Credit Union, also of Baton Rouge.
“I’m delighted we could help these small credit unions establish relationships with larger institutions to help them grow and thrive,” NCUA Chairman Rodney Hood said in a press release.
Larger credit union mentors provide technical assistance to the MDI mentees which includes building staff capacity by way of training, improving credit union operations and assisting with the modernization process. Based on the results of the pilot program, NCUA may expand the initiative in the future.
In order to apply for the grant, both mentees and mentors must be low-income designated through the NCUA or a similar state designation confirmed by the NCUA. Both parties must also have a CAMELS composite rating of three or better, but no more than one CAMELS component rating of four. The mentees must also qualify for an MDI designation.
“These grants are in keeping with the agency’s efforts to support and preserve minority depository institutions, which are so vital to providing affordable financial services and investments to their communities,” Hood said in the release.