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Low-income people typically cannot benefit from the federal incentives that reward middle- and upper-income people for saving money. These incentives come in the form of tax breaks, which annually add up to $300 billion. They include the mortgage deduction and IRAs.
Lower incomes and a lack of assets keep many people from achieving financial stability. Low-income individuals are often unable to save for a down payment on a home, a small business, a car or college tuition.
Individual Development Accounts (IDAs) are savings accounts available to eligible low-income people to help them purchase a home or car, start or develop a small business or attend post-secondary education.
Participants deposit between $25 and $100 each month into an IDA savings account until they’ve reached their goal – up to a maximum $2,000. Deposits are matched with three times the deposited amount. If the maximum is saved, the saver will end up with a total of $8,000!
IDA participants are required to develop savings goals/plans, access economic literacy training/education, and plan for asset management.
The Community Loan Fund provides IDAs to New Hampshire's low- and moderate-income people with the New Hampshire Statewide Individual Development Account Collaborative. The Collaborative supports a community organization’s ability to offer IDA programs.
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For new applicants
(coming soon)
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If you are interested in opening an IDA, or if you are a community organization interested in how the Community Loan Fund might work with you to offer IDAs to your clients, please contact us at (603) 224-6669 or info@theloanfund.org.
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