Three low-income credit unions that are designated as minority depository institutions (MDIs) were awarded an aggregate $74,875 in grants by their federal regulator through the agency’s Minority Depository Institution Mentoring Pilot program, the agency said Friday.
The National Credit Union Administration (NCUA) said the awards will be used by the credit unions to build mentoring programs with three larger institutions. The awards went to:
- Fidelis Federal Credit Union, New York, N.Y., which will be mentored by Neighborhood Trust Federal Credit Union, also of New York;
- Southern Teachers and Parents Federal Credit Union, of Baton Rouge, La., 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, N.C.
The MDI pilot program facilitates technical assistance grants through the NCUA Community Development Revolving Loan Fund (CDRLF). The pilot program helps 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 NCUA said 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 agency says it will use the results of this pilot program to explore the possibility of expanding the initiative in the future.