FREQUENTLY ASKED QUESTIONS
Business Equipment IDA
What is an Individual Development Account? Individual Development Accounts or “IDAs” are matched savings accounts established to help low income households purchase important assets. Every dollar a person saves (up to a certain amount, in this program $4,000) is matched by one dollar. Working with a nonprofit agency, IDA participants establish a special savings account, identify a savings goal and agree to regularly save a certain amount each month. They also agree to participate in financial literacy and “asset specific” training. When the savings goal and other requirements are met, the nonprofit matches the participants’ savings using state or federal funds and a check is sent directly to the vendor to purchase the asset.
What are Business Equipment IDAs? These IDAs allow participants to be matched up to $4,000 for assistive technology or business equipment for employment/self-employment, or training (related to the equipment or software) that will lead to employment/self-employment. Items include, but are not limited to, computers, printers, software, home modifications, and other assistive technology or equipment needed for a business.
Who is eligible for this IDA Program?To be eligible, an applicant must show that:
- He or she is a Washington state resident with a physical, mental or sensory disability
- His or her household income at the start of the savings program is equal to or less than 80% of the county median income, adjusted for household size.
- Household net assets at the time of application must be at or below $20,000. “Household net assets” is the total market value of all assets owned in whole or in part by any household member minus total debts or obligations. The value of the primary dwelling unit, one motor vehicle and adaptive technology including durable medical equipment, special needs trusts and similar accounts (including e.g., accounts set up under ABLE Act), and retirement accounts are excluded in calculating net worth.
- The individual account holder must be at least 18 years old when the equipment is purchased.
How do participants enroll in the Business Equipment IDA? Contact the Washington Access Fund and we will send you an application. If the application is approved, you will complete a Savings Agreement & other enrollment forms. Once these forms are completed, we will help you establish a special custodial IDA bank account. Once the account is set up, you must make regular monthly deposits in the account. Deposits will be made by electronic funds transfer on a day of the month that you choose.
Are there other requirements? Yes. You must participate in the two trainings listed below. The Access Fund will help you identify qualified trainings. Both trainings must be started within the first six months of saving and completed at least two months prior to the first purchase.
- All participants must complete Financial Education training approved by the Access Fund, which may include a disability benefits component.
- All participants must complete Asset Specific training. If the participants’ goal is self-employment and an acceptable business plan has not yet been written, then a business plan must be developed through an Access Fund or other approved business planning class. Depending upon savings goals, other asset specific trainings may be identified (i.e. purchasing assistive technology, computers etc.).
What income can I use to save for the IDA? You can use any income, including SSI or SSDI.
Is there a deadline for applying? There is no deadline for applying, but qualified applicants will be accepted on a first-come, first-served basis; and since there are only a limited number of slots, please get your applications in quickly.
How long do I have to save? You must save for at least six months in order to receive the match. Your savings goal must be completed within three years of your IDA enrollment.
How much can participants save and receive in matching funds? You must save for at least six months in order to receive the match. Your savings goal must be completed within three years of your IDA enrollment.
If the business equipment costs:
|
You'll need to save:
|
Which is about:*
|
| $2,000 |
$1,000
|
$28/month |
| $4,000 |
$2,000 |
$55/month |
$6,000
|
$3,000 |
$83/month |
| $8,000 |
$4,000 |
$111/month |
*These figures assume using the full 3 years of the program to earn match. If you want to achieve your savings goal in less than three years you’ll need to save more each month, or make extra deposits. You can also apply for an Access Fund loan if it’s necessary for you to acquire the equipment more quickly or need more than you’ve saved.
Can the IDA be combined with a low-interest Assistive Technology Loan or a Business Equipment Loan from the Washington Access Fund? Participants also are eligible to apply for a low interest Assistive Technology or Business Equipment loan from the Washington Access Fund. Participation in an IDA savings program does not guarantee loan approval. However, if approved, the loan can be combined with IDA savings and match to purchase needed equipment.
How will the IDA affect asset or income limits for SSI or other government benefits? An IDA will not impact your eligibility for SSI or your monthly benefit payment, or any other federal benefit program if your savings account is set up in a custodial account. This is an account held in the name of the Washington Access Fund with the participant as a beneficiary. Because it is a custodial account, you cannot withdraw funds from the account without our permission. When a purchase is made, it will be for equipment needed for work related activities and the check will be sent directly to the vendor – meaning that the funds do not pass through the participant’s account. This all means that neither the savings nor the match should be counted as income and/or assets.
If I change my mind, can I withdraw from the program? Yes. You must notify the Access Fund of your decision. We will provide the paperwork you need to access the funds (that you have saved, not the match) in your IDA account. Note: withdrawal of funds for a non-IDA purpose could impact the amount of, or eligibility for, SSI, Medicaid or other government benefits.
Do you have more questions? GIve us a call at (206) 328-5116 or send an email to leann@washingtonaccessfund.org.
