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Individual
Development Accounts (IDA)
Program
Objectives:
- To promote
the participation of refugees in the financial institutions
of this country; and
- To assist
refugees in purchasing assets to promote their economic self-sufficiency.
Program
Description:
The Individual Development Account Program (IDA) provides
matched savings accounts and financial literacy training to assist
low-income refugee individuals and families with asset accumulation
in order to promote refugee economic independence. Individual
Development Accounts are leveraged, or matched, savings accounts.
IDAs are established in insured accounts in qualified financial
institutions; and the funds are intended for specific Savings
Goals. Allowable savings Goals are Home ownership or renovation;
Microenterprise capitalization; Post-secondary Education, Vocational
Training, and Recertification; Purchase of an Automobile; and
Purchase of a Computer.
Home ownership
includes costs of a principal residence including the down payment
and closing costs when purchasing a home. Also, costs includes
renovation costs of a new home or of an existing primary residence.
In the case of acquisition, the purchaser must be a first-time
homebuyer.
Microenterprise
capitalization costs are described in a qualified business plan,
e.g., capital, plant, equipment, working capital, and inventory
expenses. The business plan must be approved, by a financial institution,
a microenterprise development organization, or a nonprofit loan
fund. The plan must also describe services or goods to be sold
and include a marketing plan and projected financial statements.
Also, included
in microenterprise capitalization is expenditures for a business
expansion;
Post-secondary
education; vocational training; recertification costs including
tuition, registration fees, professional recertification fees,
books, supplies, and equipment related to the enrollment or attendance
of a refugee student at an educational institution. Other Savings
Goals are the purchase cost of an automobile, if necessary for
the purpose of maintaining or upgrading employment; and the purchase
cost of a Computer, including hardware and software, to support
a refugee student's enrollment in an educational, vocational or
recertification institution or for a microenterprise.
Eligible
Grant Applicants: Public or private non-profit organizations
Targeted
Populations:
In addition to persons who meet all requirements of 45 CFR 400.43,
eligibility for refugee social services also includes:
- Cuban
and Haitian entrants under section 501 of the Refugee Education
Assistance Act of 1980 (Pub. L. 96-422);
- Certain
Amerasians from Vietnam who are admitted to the U.S. as immigrants
under section 584 of the Foreign Operations, Export Financing,
and Related Programs Appropriations Act, as included in the
FY 1988 Continuing Resolution (Pub. L. 100-202); and
- Certain
Amerasians from Vietnam, including U.S. citizens, under Title
II of the Foreign Operations, Export Financing, and Related
Programs Appropriations Act of 1989 (Pub. L. 100-461), 1990
(Pub. L. 101-167), and 1991 (Pub. L. 101-513). For convenience,
the term ``refugee'' is used in this notice to encompass all
such eligible persons.
Eligibility
for this program is limited to refugees:
- Who have
earned income and whose household earned income at time of enrollment
does not exceed 200 percent of the federal poverty level; and
- Whose
assets at time of enrollment do not exceed $10,000, excluding
the value of a primary residence.
Geographic
Area(s): All
Policy
Info:
Legislative Authority Section
412(c)(1)(A) of the Immigration and Nationality Act authorizes
the Director ``to make grants to, and enter into contracts with,
public or private nonprofit agencies for projects specifically
designed--(i) to assist refugees in obtaining skills which are
necessary for economic self-sufficiency, including projects for
job training, employment services, day care, professional refresher
training, and other recertification services; (ii) to provide
training in English where necessary (regardless of whether the
refugees are employed or receiving cash or other assistance);
and (iii) to provide where specific needs have been shown and
recognized by the Director, health (including mental health) services,
social services, educational and other services.''
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