Individual Development Accounts

Could IDA Help You Realize Your Dream?

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Interested in a new career, or in starting and/or expanding a home-based or other small business? If so, an Individual Development Account (IDA) may be for you. An IDA is a special bank account for qualifying participants who save their earned income for post-secondary education or small business start-up and/or expansion assets.
What makes the IDA really special is that participant savings are matched by local and federal grants, when all funds are dedicated for the approved asset purchases.

Match Grant Saving Incentive

Coconino County Community Services’ (CCCS) match amount varies depending on grant availability and the match rate for the type of individual development asset being pursued. For post-secondary education, such as pursuing a certificate program or two-year degree at Coconino Community College, a participant can save up to $1,000 and receive up to $3,000 making a total of $4,000 available for needed tuition, fees, books, supplies, etc. For business start-up and/or expansion a participant can save up to $2,000 and be matched up to $4,000 for a total of $6,000 available for equipment, tools, inventory, advertising, etc.

Participants receive not only match grant incentives to fund their approved education or business asset purchases, but also gain financial literacy and develop good saving habits. All of this prepares them to successfully reach their career or business development goals. Past participants have opened an IDA to fund post-secondary education in business, Administration of Justice, Pre-Health, Construction Technology, and General Studies prior to pursuing further study at a university. Others have funded small businesses start-up/expansion providing child care, pet care, landscaping, housecleaning, specialty desserts & catering, art & music, outdoor adventure, and much more.

Research by Dr. Michael Sherraden, Distinguished Professor of Social Development at Washington University, St. Louis, MO, and the Corporation for Enterprise Development (CFED), a national nonprofit based in Washington, DC, has shown that lower-income individuals and families are more likely to escape poverty if they are able to acquire key long-term assets. Attainment of post-secondary education and/or ownership of a small business are assets which empower financial self-sufficiency, and contributes to stronger, more stable communities. CCCS IDA match grant saving incentives empower acquisition of either of these two approved assets.

IDA Process


   1. Complete the Pre-Screening Tool and email
   2. Read the IDA Guidelines
   3. Complete the IDA Application and Submit at the end
   4. Email required documents from the IDA Document Checklist to email
   5. IDA will contact participant within two weeks with request for more documentation and/or make an appointment to review IDA application

Eligibility Requirements



IDA match savings participant eligibility requirements include:
  1. Proof of Coconino County Residency
  2. Government-issued photo identification and a social security card (or ITIN, as applicable)
  3. One-month of recent paystubs, and most recent federal tax return
  4. Current credit report (only for IDABiz)
  5. Earned Income (SSDI, SSI, and unemployment are not earned income)
  6. Household net-worth (assets minus liabilities) less than $10,000 (home and primary vehicle excluded)
  7. Household annual adjusted gross income, not exceeding 200 percent of the federal poverty level. [Note: For a household of one the maximum eligible income is $23,760. For larger households add $8,280 for each additional household member.]

Please Note


Those eligible for the Earned Income Tax Credit (EITC) or TANF typically qualify for this program.

Once You Are Accepted



Once accepted, IDA participants qualify for match grant funds only after they make at least the minimum monthly deposits from their wage income for a minimum of six months, complete financial literacy training, and get their target asset list approved. If saving for a business, assets must be listed in an approved business plan.

Claiming Earned Income Tax Credit (EITC

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In past years, the IRS has reported unclaimed EITC credits in Coconino County. Participants may deposit part or all of their tax return, including EITC. By depositing a tax return, an IDA participant can more quickly reach his or her saving goal. To assist you with EITC claims, CCCS is part of a network which offers FREE Volunteer Income Tax Assistance.

Funding



The Coconino County IDA Program is supported/funded in part by:
  • Alliance Bank of Arizona
  • National Bank of Arizona
  • U.S. Dept. of Health and Human Services
  • A New Leaf, MesaCAN - Assets for Independence
  • Goodwill of Northern Arizona
  • Arizona Community Foundation of Flagstaff & Partners
  • Dougherty Foundation
  • UNS Energy Corp.

Additional Information


  • IDA Flyer
  • IDA Program Guidelines
  • IDA Application Packet
  • Verification of Employment Income
For details and an application, contact:
Robin Ferrel, VISTA Outreach Coordinator (928) 679-7466,
Scott Neuman, Program Manager, (928) 679-7463, or
Rosie Wear, Administrative Manager (928) 679-7426.