1. 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

2. 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)

3. 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

4. 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

5. INDIVIDUAL DEVELOPMENT ACCOUNT ELIGIBLE FINANCIAL GOALS Start Or Expand A Business Purchase A Home Pay College Related Expense YOU CHOOSE!

6. ENROLLMENT PROCESS 1.Opening an Individual Development Account is easy. Once you complete the Application FormApplication Form Submit on-line 2.You will be contacted by an Individual Development Account representative to guide you through the process. 3. IDA Representatives will work closely with you Answer all of your questions Help you learn financial responsibility Watch your assets grow!

7. 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 IDA BASIC QUALIFICATION

8. 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

9. 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. BASIC ELIGIBILITY OF IDA PROGRAM (CONT.)

10. HOW TO GET STARTED? Submit the IDA on-line application. 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

11. 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

12. 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

13. 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

14. 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 at Birmingham 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.”

15. REFERENCES United Way website. http://www.uwca.org/our-work/financial- stability/ida/ https://www.fdic.gov/bank/analytical/quarterly/2007_vol1/IDAs -and-banks.html