Earn a Matching Grant for Your Business with an IDA

“Mercy Corps Northwest helped me turn a hobby into a successful crafting business. Through its IDA program, I had the opportunity to save money, learn about running a business, and ultimately make more money to support my family. By the time I finished the class, my sales had doubled. A resource like MCNW is essential for the creative people in Portland who want to make their ideas a reality.” —Corinna Buchholz, owner of piddix LLC which provides high quality, royalty-free images to independent crafters

Earn a Matching Grant for Your Business with an IDA

Through a Mercy Corps Northwest matching grant program, entrepreneurs can obtain the funds they need to purchase assets for their small businesses. Since 2001, this special savings program – called an Individual Development Account, or IDA -- has provided 500 people with the resources to start or expand their enterprises.

The concept of IDAs is to help low-income American families save, build assets and enter the financial mainstream. The program rewards working families who are building towards purchasing an asset -- most commonly buying their first home, paying for post-secondary education or starting a small business – by matching their monthly savings. The Mercy Corps Northwest IDA program is specially geared to the needs of entrepreneurs, helping them start or expand their small businesses.

STEP ONE: Learn About Our IDA Program

Our IDA program can give your small business a powerful boost. Mercy Corps Northwest will match the savings of qualified small business applicants three-to-one.

Once you have established your IDA savings account with us and have saved $1,334, MCNW will match your savings with an additional $4,000. You can then use your new total of $5,334 to purchase assets such as tools and equipment for your business.

To obtain matching funds through our IDA program, you must:

· Attend an orientation about MCNW programs

· Submit your IDA application

· Meet with IDA staff to enroll in the program

· Deposit savings in your IDA account every month for a period of six to 24 months

· Take our Business Foundations course (partial scholarships are available to cover the $150 fee for each course)

· Complete your business plan -- with our help!

· Meet with IDA staff to start purchasing your business assets

STEP TWO: Find Out If You Qualify

Answer these four questions to find out whether the MCNW matched savings IDA is a good fit for you.

If you can answer “yes” to all four questions, you may qualify. Even if you do not qualify now, please visit our website from time to time, as we may have new programs to offer.

1. Are your household earnings less than the income limits in this table?

Family size Income limit

1 $21,780

2 $29,420

3 $37,060

4 $44,700

5 $52,340

6 $59,980

7 $67,620

8 $75,260

Note: These figures are below 200 percent of the federal poverty level

2. Do you have less than $10,000 in total household assets -- excluding your home and your primary vehicle?

3. Do you have a source of earned income to make a minimum monthly savings deposit of $55?

4. Are both your business and residence located in Oregon?

STEP THREE: Attend A Free Orientation to Learn More

Attend our free one-hour session to discover how Mercy Corps Northwest can help you build your business. You can pick up an IDA application and learn more about our matched savings, loan and business education programs.

STEP FOUR: Turn in Your IDA Application

When you complete and submit your IDA application -- with copies of all the documents requested on page 6 – you will receive a response from IDA staff within 15 business days.

Questions?

Sarah Castagnola | Asset Development Services Manager
43 SW Naito Parkway Portland OR 97204
(T) 503-896-5083 | (F) 503-896-5071

Oregon IDA Application Form

Please fill out this application completely to the best of your ability. Refer to the checklist, on the last page, for required documents to be submitted with your IDA application. Incomplete applications cannot be considered.

Date ______

Applicant Name: ______

Social Security Number: ______

Residence Address: ______

City: ______County ______State: ______Zip code: ______

Home Phone #: ______Mobile/Alternate Phone #: ______

E-Mail Address: ______

Have you attended a Mercy Corps Northwest orientation?  Yes  No

If so, when? (date)______

Have you completed the Mercy Corps Northwest Foundations business class?  Yes  No

If so, what was the date of first session you attended? (date)______

Please list all household members below. (“Child” is defined as being under 18 years old.)

Name

Adult

Child

DOB

Relationship

Income/mo

1 Yourself (first name ______)

X

------

/ /

Self

$

/ / / / /

Total

/ / / / /

Current Employer (for self-employment: see next section)

Company Name / Employed (month/year) From: To:
City State / Wage $ per Hour or Month (circle one)
Position/Type of Work / Average Number of hours worked weekly:

Self Employment /Your Business (if applicable)

Business name:
Started (first sales) month ______year ______/ Last year’s gross sales: $
Type of business / □ Full time (35+/week) □ Part-time □ Seasonal
Web address: www. / Business email:
Business phone number : / Business address:
Calculating the Monthly Gross Income of Your Household
Please write down the monthly income received from each source. Try to be as accurate as possible.
Household Income per Month
YOU / OTHERS IN THE HOUSEHOLD
YOUR monthly gross salary or wages / $ / Others’ monthly gross salary or wages / $
Self-employment Income / $ / Self-employment Income / $
Investment income / $ / Investment income / $
Child Support/alimony / $ / Child Support/alimony / $
General Assistance (i.e. food stamps, TANF) / $ / General Assistance (i.e. food stamps, TANF) / $
SSI or SSD (Social Security Benefits) / $ / SSI or SSD (Social Security Benefits) / $
Unemployment Compensation / $ / Unemployment Compensation / $
Retirement income (Pension/Annuities/IRAs) / $ / Retirement income (Pension/Annuities/IRAs) / $
Dependent benefits / $ / Dependent benefits / $
Business Income/Self-Employment Income / $ / Business Income/Self-Employment Income / $
Other income (specify:______) / $ / Other income (specify:______) / $
Other income (specify:______) / $ / Other income (specify:______) / $
A. Your Total Income / $ / B. Other’s Total Income / $
TOTAL INCOME ( A. Your Total + B. Others Total Income ) / $

Calculating Household Net Worth

Please fill in the chart below showing what your household owns (assets) and what your household owes (liabilities).

Assets are things you own. / Assets (+) /

Liabilities are things you owe.

Liabilities

(-)
Vehicle 1
Year:
Make:
Model:
Mileage:
$ / Vehicle 2:
Year:
Make:
Model:
Mileage:
$ / Total 1 / $ / Vehicle 1:
Total debt still outstanding as of current date:
$ / Vehicle 2:
Total debt still outstanding as of current date
$ / Total 1 / $
Home 1:
$ / Home 2:
$ / Total 2 / $ / Mortgage 1:
$ / Mortgage 2:
$ / Total 2 / $
Cash / $ / Unpaid income/property taxes / $
Checking Accounts / $ / Unpaid child support / $
Certificate of Deposits (CDs) / $ / Credit Cards (MasterCard, VISA, AMEX) / $
Savings Accounts / $ / Store Credit / $
Children’s Saving/CDs / $ / Personal line of credit / $
Business bank account balance / $ / Medical Debts / $
Business Asset/Inventory Amount / $ / Personal Debts (family, friends) / $
Retirement (401k/IRA/etc.) / $ / Student Loans / $
Non-retirement Stocks/Bonds / $ / Business Debts / $
Other assets______/ $ / Other liabilities ______/ $
Subtotal / $ / Subtotal / $
Minus Vehicle 1 / $ / Minus Debt outstanding for Vehicle 1 / $
Minus Home 1 / $ / Minus Mortgage 1 / $
Total Assets / $ / Total Liabilities / $
Net worth (Total Assets minus Total Liabilities) = $______

Have you ever been registered on the ChekSystems®?  Yes  No

Do you use direct deposits for your paychecks?  Yes  No

How did you first hear about the Asset Builder IDA program?

 Friend  IDA program participant  Mercy Corps staff  Internet  News media

 A flyer or brochure  Referred by ______agency  Other (please specify)

Are you or a family member an employee or volunteer at Mercy Corps Northwest?  Yes  No

What do you plan to do with your OIDA account? o Start a business o Expand my current business

Are you currently using any other services at Mercy Corps?  Yes  No

If yes, please identify the service(s)

Are you planning to apply for a loan through Mercy Corps Northwest’s microenterprise loan program?

 Yes  No

Have you or any member of your household ever participated in an Individual Development Account Program?

 Yes  No

If yes, please provide the name of the organization: ______

Use or goal of the IDA program: ______

Amount of match amount received: $______

Short Business Plan. Please fill this section out in detail with complete sentences. Feel free to attach additional sheets to better explain your business or business idea. This business plan will greatly influence whether your business will be eligible for this program.

1. Briefly describe your business. (Please include legal organization of the business.)

2. What products or services will you sell? What is the demand for your products/ services? Please cite sources.

3. What is your experience with this product or service?

4. What previous business experience have you had?

5. Who is your target market for this product or service? (Please be as detailed as possible.)

6. Where will your place of business be and why is this a good location for your business? (Examples could include: home, mall, business district, etc. Please include city and specific neighborhood and area within the city.)

7. What other resources have you contacted or used for help with your business?

8. What are your goals for your business this year and how do they fit with your long-term business and personal goals?

Use of Funds

The IDA match savings program operates on a 3:1 match ratio. After saving $1,334, attending the required Foundations class and approval of your business plan, Mercy Corps Northwest matches your $1,334 saved with a $4,000 grant. IDA funds can only be used for Oregon based businesses for the purchase of hard assets. Inventory, rent and other monthly expenses are not covered through IDA funds. Vehicle purchases are also not eligible. A total of 25 % of your funds can be used toward marketing if it is a long term asset to your business such as website creation or logo design. How do you plan on using the money received through this program? Please list specifically how the entire $5,334 will be accounted for.

Proposed use of IDA funds
Description / Cost

Enclosures checklist:

Please submit the copies of the following documents with your IDA application (Do not attach originals):

q Tax Returns for past year

q Income verification for past two months

q Copy of Oregon ID

q Bank statements (personal and business) (2 most recent months)

I certify that all the statements made on this application are true to the best of my knowledge. I understand that any misrepresentation, false or misleading statement may result in the denial of my application or permanent termination from the program.

(Applicant’s signature) (Date)

Return to: Mercy Corps Northwest Phone: (503) 896-5083

Attn: IDA Program Staff Fax: (503) 896-5071

43 SW Naito Parkway

Portland, OR 97204