Alternatives FCU, NY Town Form Small Biz Alliance
To help residents in Dryden, N.Y. start their own businesses, the town has partnered with Alternatives Federal Credit Union to provide individual development accounts to make it happen.
Dryden will provide a two to one match on individual savings. For every dollar a person saves, it will contribute two dollars. A maximum of $1,000 can be matched for a total of $3,000. Participants are required to complete finance and business classes offered by the IDA program. Matching funds can be used for start-up or expansion of business ventures located in Dryden and owned by residents there. The maximum household income requirement for the IDA is $36,600 for a household of one and $5,250 for each additional household member.
The $63 million Alternatives FCU in Ithaca, N.Y. will administer the IDA program. The credit union said it has provided IDAs for more than 10 years offering programs that allow people to save for the first home, college expenses or starting a business. More than 300 people have saved and made asset purchases through the IDA program including 70 home purchases, according to Alternatives.