IDA
Individual Development Account
ABOUT IDA
Individual Development Account
IDAs are matched savings accounts that help business owners leverage the power of their own savings in support of their self-determined financial goals.
MESO’s Business IDA Program offers a 5 to 1 match, and each person can receive up to $12,000 if they meet their savings goal and complete the program requirements.
MATCH RATE 5:1
For every $1 that IDA participants save, we contribute $5 toward their business.
MESO will match up to $12,000 for entrepreneurs who save $2,400 in their IDA account. To help IDA participants achieve their savings goal, we provide one-on-one business coaching and financial education classes.
HOW IT WORKS
An IDA is a savings account that you open after being approved for the IDA program. MESO is connected to this account, and we can see all the deposits and withdrawals made on the account. MESO also authorizes all withdrawals made from the account.
After the IDA is opened, you can begin working on completing the IDA withdrawal requirements, such as attending financial education courses, writing a business plan. creating financial projections and putting together a plan for your IDA purchases - all with the support of a MESO Business Advisor.
After you meet your savings goal of at least $600 and satisfy the withdrawal requirements, you can submit a request to receive your IDA match funds (ex. $3,000).
Once your request is approved and the funds are received, you can start making the purchases as outlined in your purchase plan.
HOW TO APPLY
The first step is to schedule a meeting with a MESO business advisor who can answer your questions about the IDA program, explain the eligibility requirements, and walk you through the application process.
Due to the limited funding of the program, we may not be able to accommodate everyone who’s interested, but we are happy to add you to our interest list.
BUSINESS IDA OVERVIEW
| Asset Goal | Business |
|---|---|
| Match Rate | 5 to 1 |
| Minimum deposit needed to open an IDA | $25 |
| Timeline for saving and spending | 3-36 months |
| Recommended savings goal | $100 per month |
| Maximum IDA matching grant funds available per participant | $12,000 |
| Savings needed to receive the maximum IDA match amount | $2,400 |
ELIGIBILITY CRITERIA
- MESO Empower participant, MESO Childcare participant or Referral from APANO
- 18 years or older
- Live in Oregon
- Own at least 50% of the business
- Business in operations for at least 3 months
- Be able to open a savings account
- Have a household net worth equal to or less than $20,000 (excludes one car, one house, and up to $120,000 in retirement savings)
- Gross annual household income should be at or below 80% of the area median income (AMI) the IDA income limits are based on your household size and county.
WHAT'S REQUIRED
- Have the IDA account open for at least three months.
- Have the corresponding amount in savings to receive match funds.
- Complete financial education requirement
- Write a business plan.
- Create 12-month financial projections.
- Make a purchase plan with quotes/invoices.
- Have an active business registration and EIN.
- Have an active business checking account.
OREGON IDA INITIATIVE
MESO is a partner of the Oregon IDA Initiative and is awarded funds annually to support entrepreneurs in Oregon. The IDA program is funded mostly by tax credits and is managed by Neighborhood Partnerships.
GET IN CONTACT
If you have any IDA questions, feel free to reach out to the IDA Team at IDA@mesopdx.org.
