Introduction to Individual Development Account (IDA) Program
Welcome to the MicroBiz Buffalo, Inc. and the Belmont Shelter IDA Program! Since 2005, Belmont has been offering IDA accounts for low-to-moderate income families of Western New York. The program has now been expanded to include individuals interested in starting, expanding or relocating a business to Buffalo's Historic West Side.
Program Overview
What is an IDA?
Individual Development Accounts are matched savings accounts designed to help low-to-moderate income families build assets. For this program, you can save to start or improve a microbusiness or for the purchase of a first home.
Match Ratio
This program offers a 4:1 match. That means every $1.00 you save is matched with $4.00 towards your business or buying your home.
Program Time Limits
You must save in the program for a minimum of 6 months. The maximum time you can save depends on when you join the program and the amount you plan to save. You must use the funds before February 2012.
Participant Eligibility Criteria
Earned Income Guidelines
Earned income must be either no more than 200% of the Federal Poverty Guidelines or you must qualify for the Earned Income Tax Credit.
"Net Worth" Test
The net worth of your assets can be no more than $10,000 excluding the primary dwelling unit and one motor vehicle owned by a member of the household.
Financial Education Workshops
Financial Education Workshops will cover topics including, but not limited, to Personal Budgeting, Credit Issues, Banking Products and Services, and Saving and Planning for the Future. It is a requirement that you attend all these workshops within 3 months of joining the IDA Program. Also, there are monthly savings club meetings that are a requirement of the program. For participation in MicroBiz Buffalo's Small Business IDA, please contact us.
Debt-to-Income Ratio
If you have a high debt - to -income ratio, you must implement a practical repayment plan to qualify for the program.
Savings Plan Agreement
Savings plan agreements will document responsibilities of you and of Belmont, and will list the minimum amount you must save each month.
Special Savings Account
M & T Bank is the partner for this IDA program. To qualify for the program you must be able to open an account at M & T.
