Individual Development Accounts

	CAPital Investments - IDA Program

	Individual Development Accounts

	What is CAPitol Investments IDA?

	An Individual Development Account (IDA), or matched savings account, helps low income working families establish a pattern of regular saving which are used to purchase a home, start a small business, or for continuing education.

	How Does It Work?
	In order to become self-sufficient, people with low incomes must have the opportunity to save money and build wealth. However, for working low income families, saving money and acquiring assets is a goal that is sometimes out of reach, as they struggle to meet basic needs. In fact half of all Americans have less than $1,000.00 in savings.

	Significant research studies and past experience provide evidence that IDA's have been very successful in helping families move out of poverty and become self sufficient.

	IDA's, or Individual Development Accounts, are special matched saving accounts designed to help families and individuals of modest means to establish a pattern of regular saving and , ultimately, purchase a "productive asset." A "productive asset" is something of value that is likely to return substantial long-term benefits to its owner - benefits like security, stability and opportunities for more income. CAPital Investment participants may use their savings and match money toward any of three productive assets: a home, a small business or a post secondary education.

	Who is Eligible?
	Participants must be:
	Residents in the Lower Columbia CAP service area (Cowlitz and Wahkiakum Counties. Income eligible, below 200% of federal poverty level (FPL,) or 80% of the area median income. Financially able to save Committed to achieving one of the allowable asset goals within three years.
	What is involved in participating?
	IDA participants are asked to commit to:
	select an asset goal create a savings plan make monthly savings deposits save in the program for at least 6 months attend a personal finance and money management workshop series participate in asset-specific ownership preparation training participate in credit counseling ultimately use saving and match funds to acquire their chosen asset goal goals must be completed within an established timeline
	How much will I earn?
	IDA account holders save $2,000.00 and state and federal funding provide a 2.1 match of $4,000.00. This allows for $6,000.00 to be applied towards the qualified asset purchase of a first time home, small business start up, or to fund an education.

	In 2000, CAP's Career and Family Development Department partnered with Washington State CTED (Community Trade and Economic Development) which funded Individual Development Accounts. (IDAs). In 2007 CAP also received federal Assets for Independence (AFI) match dollars also to fund IDAs. This funding is provided to increase the assets and financial literacy of low income working families and individuals in Washington State.

	A network of IDA partners have formed the Cowlitz Asset Building Coalition.

	These partners provide:
	Family Money Management workshops Individual budget and credit counseling Access to traditional bank products Home Buyers education Microenterprise education Work Training programs Free Income Tax Filing Case management and emergency intervention resources to help families stabilize their lives and achieve long-term goals.

	Anyone interested in finding out more about CAPital Investment should contact CAP. Enrollment applications are distributed in Career and Family Development. To receive additional information or ask a specific question, call Elizabeth Myntti, Asset Services Program Manager at Lower Columbia CAP at: 360-425-3430 ext 215.

	Fax: 360-414-8974 Email: lizm@lowercolumbia.org 1526 Commerce Ave. Longview, WA 98632