NCUA Offers Grants to Minority Credit Unions
The grants will promote new mentors for small credit unions serving low-income communities.
The NCUA is offering grants up to $25,000 to provide mentors to small minority credit union that serve low-income communities.
The NCUA plans to approve three to five targeted technical assistance grants to the credit unions as part of a pilot mentoring program. These small credit unions will be paired with larger low-income credit unions that can guide the smaller ones.
Both credit unions must be Minority Depository Institutions (MDI), a designation requires that minorities account for more than half a credit unions’ potential members, current members and board members.
The NCUA application guidelines for the mentoring grants says the program is designed to encourage strong and experienced credit unions to provide guidance to small MDI credit unions to increase their ability to thrive and serve low-income and underserved populations.
“Minority depository institutions play a crucial role in delivering financial services to people and communities who have been overlooked,” NCUA Board Chair Rodney E. Hood said. “This pilot project is an extension of the efforts the NCUA makes through its Minority Depository Institution Preservation Program to provide technical assistance, training, and mentoring opportunities to help these credit unions help their members.”
The NCUA will accept grant applications from Aug. 18 through Sept. 28. Interested credit unions can find applications through the agency’s CyberGrants portal.
The agency will notify applicants of the final decision and announce the award finalists by Nov. 1. The mentorships will begin on or after Jan. 1, 2020.
The NCUA’s annual Community Development Revolving Loan Fund allocation is providing funding for the pilot program, including up to $125,000 for the pilot grants.
The small scale trials funded in the pilot program are designed to help the NCUA determine whether this type of initiative is appropriate and ready for full-scale deployment.
The grants may be used for any eligible expenses associated with facilitating a new mentorship relationship. Funding approval will be based on the applicant’s ability to demonstrate a well-developed plan for the mentoring assistance it would receive.
The mentee credit union is responsible for submitting the grant application. Mentee credit unions with assets less than $100 million will receive priority consideration during the application review.
Applicants must:
- Be for a newly formed mentorship.
- Partner with mentor credit unions advising only one credit union through the grants.
- Partner with mentor credit unions that agree not to merge with their mentee for a defined period following the mentorship.