What is IDA?

The IDA is a program where Newark Now in cooperation with the State of New Jersey, the Federal government and Capital One Bank will match a participant's savings at a 2 for 1 rate. We currently have two versions. One is matched with a grant from the state Department of Community (DCA) funds and a like amount from Capital one. The other one uses the Federal Health & Human Services (HHS) funds and a similar match from Capital One. The former program is called the DCA IDA and latter one is called Assets for Financial Independence (AFI ) IDA. In both IDAs, participants must be employed at the time of enrollment. In addition, participants in the DCA IDA must have a dependant minor (18 or under) in the household and their income cannot exceed 250 % of the Federal Poverty Level (FPL). Incomes for the AFI IDA cannot exceed 200 % of the FPL based on their household size. The DCA IDA provides participants with the ability to save up to $1,500 of their dollars and we will match it at a rate of $3,000 for the first year. If the participant stays in the program for three years and deposits the same amount, they could save $4,500 and we will provide them with a match of $9,000. Unlike the DCA IDA, the AFI IDA offers a lesser amount. The individual can save up to $2,000 during their participation and receive $4,000. However, there can be up to two AFI IDA participants in the household. Lastly, all participants must complete financial literacy classes provided by us and they must choose one of the following saving's goals on enrollment: Homeownership, starting a new business or expanding an existing one or higher education.

As of May, 2011 both the DCA & AFI IDA's now allow two accounts in the household. However, unlike the AFI IDA, the DCA IDA accounts must have different asset goals. For example for the DCA IDA, a parent may save for a home purchase and a non-minor child living with the parent may save for education. The IDAs are to be treated separately. In the case of a couple saving for a home purchase, the individuals may jointly save under the program however they cannot save individually for the same home purchase.

The participants in the IDA programs must complete all of the required financial literacy classes, prior to making a withdrawal of the matched funds. Each class is two hours long and are as follows:

CLASS#	TOPIC
0001	Good Credit
0002	Banking Basics
0003	ID Theft & Acct Fraud
0004	Money Management
0005	Rebuilding Good Credit

In addition, IDA savers must complete six to eight hours of asset specific classes. Asset is defined as the savings goal chosen by the saver. As mentioned before, they have to choose one of the following: Homeownership, starting a new business or expanding an existing one or higher education. These classes are as follows:

0006 A	Keys to Homeownership
0006 B	Keys to Homeownership
0007 A	Successful Homeownership
0007 B	Successful Homeownership
0008 A	Micro Business
0008 B	Micro Business
0008 C	Micro Business
0009 A	Higher Education-Basics FAFSA

Please note that all of these classes are available to anyone, not just to the IDA participants. Also please see the attached Financial Education schedule for dates and times.

About Micro Business!

Micro Business is defined as a small company run by their owners with few or no employees and are often home-based, with annual sales under $250,000. As part of our IDA program, we offer resources to the participants to put together their required business plan. This is an important document that the participant will need in order to get a microloan to further expand their businesses beyond the IDA dollars that they would have accumulated.

About Credit Lab!

The credit lab is a component of our credit coaching initiatives. Individuals seeking credit coaching will need to have a copy of their latest credit report and they are encouraged to come together as a group to get their reports. We provide the computers and internet access to allow them to do it, while the credit coach instructs them on the process to get it.

Check our Calendar for all of the FEC Events!

Check out this Video about employee background checks.