Greenwood Index-Journal
By Kristi King-Brock
SCACED Board Chair & Executive Director of Anderson Interfaith Ministries,
Once one of the most popular and impactful programs offered through nonprofits and community development groups across the state, the statewide Individual Development Account (IDA) program was offered for 20-plus years before its funding was exhausted in 2020. Since then, South Carolina families and individuals have persevered through a global pandemic and are currently facing historic economic and financial pressures. Now that the state legislature will be convening this fall to decide how to allocate state fiscal recovery funds received from the American Rescue Plan Act (ARPA), an opportunity presents itself for the legislature to provide much needed boost and strengthen the financial stability of South Carolina’s citizens and families through reestablishing a statewide IDA Program.
The South Carolina Association for Community Economic Development (SCACED), an organization which I’m proud to serve as board chair, earlier this year proposed their American Rescue Plan Economic Equity Agenda, including a recommendation of $10 million be allocated to fund a statewide IDA Program through the state Department of Social Services of state Department of Commerce.
The IDA Program is a 3:1 matched savings account program that allows individuals to use their savings and match money toward any of three productive assets: a home, a small business, or post-secondary education. Participants are required to save their funds and participate in financial literacy education and asset-based trainings before having access to their match funds.