NCUA official seal NCUA official seal. (Source: NCUA)

The NCUA announced Wednesday that it will begin taking applications Oct. 11 for its next round of mentoring grants to help Minority Depository Institutions.

To be eligible, a credit union must be federally insured and designated as both a Minority Depository Institution (MDI) and a low-income credit union. Applications must be received by Oct. 29.

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Chairman Todd M. Harper encouraged MDIs to apply for the grants, which are up to $25,000 each and from a pool of $100,000. The grants support mentoring relationships that allow larger, experienced credit unions the opportunity to provide guidance to other MDIs.

"The expiration of unemployment benefits and foreclosure and eviction moratoriums mean that low-income households and communities of color will face financial stress in the coming months," Harper said. "The NCUA's mentoring grants program helps MDI credit unions provide greater opportunities for members to build financial security, make investments in communities and help to close the wealth gap."

In the Federal Register, the NCUA said the loans are designed to increase the ability of MDIs "to thrive and serve low-income and underserved populations." Funds can be used for eligible expenses associated with facilitating a new mentorship relationship.

Awards will be made to credit unions that demonstrate a well-developed plan for the mentoring assistance it would receive from a mentor credit union. The plans should show:

  • How the credit union will grow, for example through gaining more members or making more loans.
  • How it will improve its management and operations, such as leadership training, developing new policy-and-procedure documents, or responding to exam or audit findings.
  • How it will increase the credit union's capabilities, such as introducing a new program, a new service or improving its systems.

The NCUA's website includes a grants page with a link to a 23-page guide called "MDI Mentoring Cohort: Guidance on Selecting a Mentor."

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Jim DuPlessis

Jim covers economic data trends emerging for credit unions, as well as branch news and dividends.