CAPITAL & ACCESS TO CAPITAL - Home

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CAPITAL & ACCESS TO CAPITAL: (PART II)
INDIVIDUAL DEVELOPMENT ACCOUNT (IDA)
E’licia L. Chaverest, M.S.
Program Manager and Marketing Specialist
Small Farms Research Center
College of Agricultural, Life and Natural Science
Alabama A&M University
____________________
What is IDA?
(IDA) means Individual Development
Accounts Saving accounts that provide
matching funds for farmers of low or
moderate means.(state and regional
initiative)
IDA PROGRAM
The program is part of Assess for Independence,
a federal program administered by the Office of
Community Services of the US. Department of
Health & Human Services .
• United Way of Central Alabama serves as an administered for the
IDA Program
HOW DOES THE IDA PROGRAM WORK?
Open an IDA (a no-fee saving account and
make monthly deposits of at least $25
which will be matched 2 :1
•Qualifying individuals to save up to $2,000
for a total of $6,000.00 that used for the
financial goals
INDIVIDUAL DEVELOPMENT ACCOUNT
ELIGIBLE FINANCIAL GOALS
• Start Or Expand A Business
• Purchase A Home
• Pay College Related Expense
YOU CHOOSE!
ENROLLMENT PROCESS
1. Opening an Individual Development Account is easy.
• Once you complete the Application Form
• Submit on-line
2.
3.
•
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•
You will be contacted by an Individual Development Account
representative to guide you through the process.
IDA Representatives will work closely with you
Answer all of your questions
Help you learn financial responsibility
Watch your assets grow!
IDA BASIC QUALIFICATION
• Earned Income
• Annual Adjusted gross income of less than
$44,700 for a family of four or an individual
income of $21, 780
• No more than $10,000 in total net worth
excluding an automobile and home
BASIC ELIGIBILITY OF IDA PROGRAM
To be eligible for the IDA program, individuals
must have:
• Earned income
• Annual adjusted gross income of less than
$47,700 for a family of four or an individual
income of $23,340.
• No more than $10,000 in total net worth
excluding an automobile and home
BASIC ELIGIBILITY OF IDA PROGRAM
(CONT.)
IDA Income Eligibility – Persons in Family and Adjusted Gross Income
 1 Up to $23,340
 2 Up to $31,460
 3 Up to $39,580
 4 Up to $47,700
 5 Up to $55,820
 6 Up to $63,940
 7 Up to $71,060
 8 Up to $80,180
For families with more than 8 persons, add $4,020 for each
additional person.
HOW TO GET STARTED?
• Submit the IDA on-line application.
• Once submitted, a United Way representative will contact
you and guide you through the process
• Once enrolled, begin making monthly deposits (minimum
of $25 per month) into your IDA – a free savings account
with no fees
• As your savings grow and are matched, you move closer to
achieving your dreams
DONORS OF IDA PROGRAM
1. Regions Bank
2. BlueCross Blue Shield of Alabama
3. Alabama Power
4. EBSCO Industries Inc.’s
5. PUBLIX and Other in surrounding counties
IMPACT ON ALABAMA OF IDA
PROGRAM
Since United Way began offering the IDA program in 2005
more than 950 individuals have enrolled in the program
and acquired stabilizing assets valued at $14.5 million.
♦ 136 Families have purchased first time homes
♦ 110 Individuals have benefited from post secondary
education or job skills training
♦ 43 Enterprising small businesses owners have opened
a new business or expanded their operation
TO LEARN MORE ABOUT THE
PROGRAM OR TO APPLY
 Contact United Way of Central Alabama to get
started 1-888-421-1266 or check out the website
www. uwca.org/ida
 It’s Easy as 1-2-3
SUCCESS STORIES
ASSET: HOME
-IDA Participant: Anika Lanier
-Date: 11/24/2009
-Value: $179,900
-Location: Jefferson County
Anika found out about the IDA program through
NHSB. She wanted to purchase a home so she could
provide a stable home for her children in a good
location for schools. She really needed the matched
savings to buy her home and after working with United
Way she was able to move up from a small 2 bedroom
apartment to her dream home.
ASSET: EDUCATION
-IDA Participant: Paul Smith
-Date: 04/28/2010
-IDA Funds: $4,226
-Location: University of Alabama
Birmingham
at
Even with a wife and three kids, Paul was
able to save money for my education because the IDA
program took away two-thirds of the cost. Paul says, “We
are so grateful for this program for me to have been able
to graduate from UAB with an Accounting degree and
stay debt-free.”
REFERENCES
United Way website. http://www.uwca.org/our-work/financialstability/ida/
https://www.fdic.gov/bank/analytical/quarterly/2007_vol1/IDAs
-and-banks.html