Minority Depository Institution Mentoring Pilot

The NCUA’s Community Development Revolving Loan Fund program provides technical assistance grants that support low-income designated, minority depository institutions and increase their ability to serve low-income and underserved populations.

The goal of the Minority Depository Institution Mentoring Pilot is to encourage relationships between low-income designated credit unions (mentors) and small MDIs (mentees). Funding approval will be based on the applicant’s ability to demonstrate a well-developed plan for the mentoring assistance it would receive from a mentor.

Eligibility Requirements

To apply for this grant, the mentee must meet each of the following requirements:

  • Have a low-income designation granted by the NCUA or a similar state designation confirmed by the NCUA
  • Qualify for and have a MDI designation as of the June 30, 2019 Call Report cycle
  • Have a CAMEL composite rating of 3 or better and not more than one CAMEL Component rating of 4

The mentor credit union must meet the following requirements:

  • Have a low-income designation granted by the NCUA or a similar state designation confirmed by the NCUA
  • Have a CAMEL composite rating of 3 or better and not more than one CAMEL component rating of 4

Application Characteristics

  • The proposed project must be for a newly formed mentorship
  • Project period up to 12 months
  • The maximum grant amount is $25,000
  • Three to five of the highest scored applications will be selected to receive up to $25,000
  • The mentor credit union may not provide services to multiple mentees under a single award
  • The mentor credit union must sign a contractual agreement not to merge with the mentee for a defined period following the mentorship
  • 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

Use of Funds

Funds may only be used for expenses directly related to facilitating a new mentoring relationship. The following list includes examples of eligible funding uses:

  • Consulting services provided or arranged by the mentor credit union’s executive officers
  • Reasonable travel expenses to the site of the mentor or mentee
  • Training provided or arranged by the mentor credit union for the benefit of the mentee
  • Educational materials such as guides or handbooks
  • Staff salary expense associated with training staff, board, or volunteers of the mentee
  • Operational expenses associated with the structure of a collaborative arrangement for the benefit of the mentee credit union and its minority members

Timeline

  • The NCUA will begin accepting applications on August 18, 2019, at 9 a.m. Eastern. Applications are available electronically through the NCUA’s CyberGrants portal
  • The last day to contact NCUA staff with inquiries about this grant is September, 25, 2019. All questions should be emailed to CUREAPPS@ncua.gov
  • Applications must be submitted by September 28, 2019, before 11:59 p.m. Eastern
  • The NCUA will notify applicants of the final decision and announce the award finalists by November 1, 2019
  • Awardees may begin their mentorships no sooner than January 1, 2020

For additional information, see the Minority Depository Institution Mentoring Pilot Application Guide.

Last modified on
07/31/19