ALEXANDRIA, Va. (Nov. 1, 2019) – Three low-income credit unions designated as minority depository institutions will build mentoring programs with three larger institutions with the help of grants announced today by the National Credit Union Administration.
“I’m delighted we could help these small credit unions establish relationships with larger institutions to help them grow and thrive,” NCUA Chairman Rodney E. Hood said. “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.”
The agency awarded a total of $74,875 in grants to:
- Fidelis Federal Credit Union, of New York City, which will be mentored by Neighborhood Trust Federal Credit Union, also of New York City;
- Southern Teachers and Parents Federal Credit Union, of Baton Rouge, Louisiana, which will be mentored by ECFU Financial, of Baton Rouge; and
- District Government Employees Federal Credit Union, of Washington, D.C., which will be mentored by Local Government Federal Credit Union, of Raleigh, North Carolina.
The NCUA awarded the grants under its pilot MDI mentoring program, which will help small low-income minority depository institutions establish mentoring programs with larger low-income credit unions that can provide expertise and guidance in serving low-income and underserved populations. The larger credit unions will provide technical assistance, such as building staff capacity through training, improvements to credit union operations, and assistance with modernization processes. The NCUA will use the results of this pilot program to explore the possibly expanding the initiative in the future.
The NCUA’s Office of Credit Union Resources and Expansion supports low-income-designated credit unions; credit unions interested in a low-income designation; minority credit unions; credit unions seeking changes in their charters, bylaws, or fields of membership; and groups organizing to start new credit unions.