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NCUA to award $125K in mentoring grants to MDIs
The NCUA Monday announced the agency is offering $125,000 in mentoring grants to small, low-income credit unions designated as minority depository institutions (MDIs). Eligible credit unions may apply from May 1 through June 30.
“Rural and underserved communities will be especially hard hit by the financial and economic disruptions resulting from the COVID-19 pandemic, and these are the areas that minority depository institutions predominately serve,” said NCUA Chairman Rodney E. Hood in a statement. “This mentoring program provides needed resources to help minority depository institutions continue to support the needs of their members and communities during this difficult time. I encourage eligible credit unions to consider applying for this program.”
The grants are available to help smaller credit unions establish mentoring programs with larger, low-income-designated credit unions that can provide expertise and guidance.
Applications will be made available via the NCUA's CyberGrants portal, and guidelines are available on the agency's website.
The NCUA has been working to promote diversity, equity, and inclusion in the credit union industry and has previously hosted events focused on these issues, including an MDI Forum and webinars.
Data from the NCUA's 2019 fourth quarter call report revealed that the number of credit unions with a low-income designation rose to 2,605 from 2,554 from a year ago.
Last October, a NAFCU witness testified before a House Financial Services subcommittee on the important role MDIs have in serving diverse and underserved communities and also recommended ways to allow credit unions to serve even more communities in need.
NAFCU will continue to support efforts that allow credit unions to grow to better serve members.