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Alabama Asset Building Coalition

The Alabama Asset Building Coalition is a partnership among federal, state, and local governmental agencies, nonprofit organizations, and the corporate community. Through the use of Individual Development Account (IDA) programs, the 41-member coalition enables Alabamians to develop assets that support generational wealth building and self-sufficiency. Currently, the coalition sponsors IDA program activity in Blount, Colbert, Etowah, Jefferson, Mobile, St. Clair, Shelby, Sumter, and Walker counties. During 2008, expansion is expected to include Uniontown, Auburn, and Montgomery.

The United Way of Central Alabama is fiscal sponsor and lead agency for the coalition’s $1.7 million Assets for Independence initiative for working families to open IDAs. These matched savings accounts accelerate earned income savings for first-time homeownership, post-secondary education, or small business capitalization. In only one year, 40 participants have opened IDA accounts, two families have purchased homes, and one person has paid for post-secondary education. The coalition offers financial literacy education as part of the IDA programs so people can make informed decisions when borrowing, spending, saving, or investing money. The coalition also provides free income tax assistance preparation to help accelerate IDA savings.

All local matching IDA funds are held in reserve until the qualifying asset or service is purchased and only then disbursed to the vendor. In addition, UWCA handles all the administrative responsibility. Banks may be eligible to receive CRA investment test credit by contributing matching funds and/or service test credit by holding the saver’s account.

E-mail DeForrest Brown or call him at (205) 458-2056, or e-mail Shirley Worthington or call her at (205) 458-2073 for details on how to become involved.
[Published in News from the Districts, Community Developments, Spring 2008]

Top of Alabama Regional Council of Governments
Top of Alabama Regional Council of Governments (TARCOG) is a state-designated planning district operating in five northern Alabama counties. TARCOG provides funding access and technical assistance from programs of the Appalachian Regional Commission and Economic Development Administration. TARCOG staff support, write and administer grant and local program applications for HUD-funded state CDBG programs and USDA's Rural Development grant and loan programs. In addition, TARCOG has its own revolving loan fund (RLF). The RLF can provide additional financing to start-up and existing businesses behind a traditional commercial lender's financing. TARCOG is interested in working with banks that need a secondary source of financing to fund loans that create jobs. The loan can be used for business expansion or start-up of regional private for-profit firms. The fund can finance up to 50 percent of the total project cost or $125,000, whichever is less. The maximum amount allowed for working capital is $30,000. Terms are 10 years for land and building, 5-7 years for manufacturing/equipment, and 3 years for working capital. Rates are negotiable at or below prime.

For more information, contact Joe Howe, Project Officer at (256) 830-0818, or see their Web site at www.alarc.org/tarcog.
[Published in News from the Districts, Community Developments, Winter 2006-2007]

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