Individual Development Accounts May Aid Small Business Owners

In today’s uncertain economic times, more and more American families are struggling to make ends meet while attempting to live the American Dream. There are some great programs available to assist families in this endeavor. Today, I want to talk to you about one of these programs—Individual Development Accounts (IDAs).

IDAs are a type of savings account that receives a special match for families and individuals living on modest incomes. The purpose of these accounts is to assist families in establishing a regular savings plan to help them purchase or acquire a productive asset. Productive assets are something valuable that has a potential of returning long-term benefits that can create opportunities for the beneficiary to earn more income such as a first home purchase, small business venture or educational endeavor.

The savings match is a promise to supplement IDA accounts with a 3:1 rate. This means that for every dollar the accountholder saves, $3 is added to that participant’s account balance. In Utah, Zions Bank and more than 27 other financial institutions founded the IDA program.

I recently had the opportunity to see the Utah Individual Development Account network’s July report, and I was delighted to discover that there are currently 227 participants investing in these savings accounts. Home ownership was the top form of investment at 57 percent, followed by education at 30 percent and business accounting for 13 percent.

As the director of the Zions Business Resource Center, I know how difficult it can be to get funds to start a business or expand an existing one. This program is a great way to procure some of the financial funding available. However, there are eligibility requirements/restrictions.

If you or someone you know may benefit from this program please call 877-787-0727 or email info@uidan.org.