IDA Timeline

IDAs are an innovative financial product and economic development tool used by community organizations throughout the United States to stimulate participants' savings rates, build their assets, and connect these individuals to the economic mainstream. Private foundations and the public sector fund most of the programs. The following four-step process documents how an IDA investor moves through the IDA program.

STEP 1 - Financial Management Education Training
All IDA investors must complete basic financial management education classes prior to applying for entrance into the program. Classes are taught at convenient locations across the state by UIDAN partners. These 8 hours are free of charge and offered in English and Spanish.

STEP 2 - Opening an IDA Account
All investors meet with a case manager to review application, spending plan, credit report, discuss asset goals, review policies and procedures and complete savings plan agreement. Approved applicants will be referred to a designated financial institution for account opening.

STEP 3 - Asset Specific Training
Asset specific training is required prior to the purchase of their savings goal. Community partners provide valuable information to help increase the likelihood of successful asset purchase and retention.

STEP 4 - Withdrawal, Assset Purchasing, and Beyond
In Step 4, investors, with staff assistance, are ready to make bank withdrawals from their IDA savings account. Participants can use funds to purchase a home, pursue their education, start a small business or purchase an assistive technology device.

For a detailed breakdown of how the IDA program works, please refer to UIDAN's policies and procedures manual.

Watch video on how IDAs work

Continue on to learn about the requirements