AFI and Small Businesses: Helping Entrepreneurs Build Assets
Entrepreneurs benefit from maximizing the equity they can invest in their businesses, but low-income individuals may not have that much to start with. That’s where matched savings accounts like Individual Development Accounts (IDAs) can be helpful. Matched savings accounts – similar to 401(k)s – allow entrepreneurs tobuild capital for their small business. Monthly deposits from participants are multiplied by the matching funds offered, up to $4,000. In addition to accumulating capital, participants establish a history of regular savings that demonstrates creditworthiness that can strengthen their potential for other financing options, such as microloan programs.
CAMEO hosted the AFI Resource Center as they discussed how matched savings programs work and benefit low-income entrepreneurs and microenterprise development organizations. This webinar also showcases the work of a current AFI grantee, the Community Action Partnership (CAP) of Sonoma County, who will share insights on managing an IDA program and supporting low-income entrepreneurs.