Selfless Words & Actions
can Illuminate the Whole Universe
Contact : (213) 263-2744
Selfless Words & Action can Illuminate the Whole Universe
Our business lending is tied to long-term relationship with borrowers in form of financial education, business management training, and ongoing technical support and assistance. Our non-traditional financing tool is different from the other financing mechanisms currently available to the communities because of its utilization of a proprietary underwriting criteria and platform that assign value to (1) acquired/retained entrepreneurial skills, (2) the business-assets, and (3) viability of business plan. Poverty Solutions has a working collaboration with the Community Redevelopment Agencies of the cities of Los Angeles, Lancaster, Palmdale, Compton, Inglewood, Carson, and Lynwood. P-Solutions also has a working partnership with T.B. & Associates, LLC, and Life is Networking Knowledge, Inc.; collaborations and partnerships which have helped the organization reach its goals and make greater impact in our communities.
On Business and Affordable Housing Loans, it has been almost impossible for families of average means and civic entrepreneurs living in our target communities to access credit because of unfavorable credit profile or the traditional lending institutions’ discomfort about lending to small businesses in these communities. Residents of these communities are without adequate access to credit due to factors that cumulatively exclude them from the credit system.
Our goal is to increase housing, business, wealth, and employment opportunities. We lend for housing, business-start-up, acquisitions, or expansion. P-Solutions trains and cultivates entrepreneurs from the pool of unemployed, and assists trained entrepreneurs and small businesses to build and invest in businesses providing and preserving jobs and other economic gains to the economically disadvantaged individuals and families and distressed communities.
What is the EEOP-IDA Program?
Empowerment and Economic Opportunity Program Individual Development Accounts (EEOP-IDA) provides IDA savings match, at the rate of 1:1, to low-income participants in California. EEOP-IDA also: (1) Provides free Financial Literacy Seminars to low-income families; (2) Helps qualified low-income persons with information about earned income tax credit; and (3) Provides free IRS tax preparation, while focusing on helping them determine if they qualify for the earned income tax credit (EITC). EEOP-IDA is an Assets for Independence (“AFI”) project funded by AFI (50%) and P-Solutions’ Private Donors (50%). AFI projects provide Individual Development Accounts (IDAs) and related services to low-income individuals.
What are IDAs?
IDAs, or Individual Development Accounts, are special matched savings accounts designed to help families and individuals of modest means establish a pattern of regular saving and, ultimately, purchase a “productive asset.” A “productive asset” is something of value that is likely to return substantial long-term benefits to its owner — benefits like security, stability and opportunities for more income. EEOP-IDA participants may use their savings and match money toward any one of three productive assets: a home, a small business, or post-secondary education.
IDAs are necessary because low-income families need productive assets if they want to escape poverty and achieve economic self-sufficiency. Right now, the federal government wisely and successfully helps the middle class acquire assets (through, for example, the home mortgage interest deduction and tax breaks for saving for college) but does not have a way to help the underprivileged acquire those assets. IDAs, through the use of matching deposits and supportive nonprofit organizations, help low-income families acquire both the capital and skills they need to “jump start” their lives, set goals for their future, and integrate themselves into the mainstream economy. IDAs are not hand-outs; they are investments in people who are willing to first save and invest in themselves.
IDA funds are paid directly to the asset intermediary (e.g., to the title company, university registrar, or business product or service provider). In addition, written authorization from the nonprofit is required for all withdrawals. Matching funds are held in a matching account and can never be accessed directly by the participants, but are dispersed on their behalf at the time of asset purchase. Also, participants must save in the program for at least six months before they are eligible for any accrued match money. Finally, all IDAs must be held by a federally insured financial institution. Fraud or misuse of an IDA are, therefore, quite unlikely.
Accounts are held at local financial institutions. Contributions by low-income participants are matched using both private and public sources. All participants receive economic literacy training that includes workshops for cleaning up one's credit, setting up a budgeting and savings schedule, and other basics of money management.
Number in Family | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
---|---|---|---|---|---|---|---|---|
Yearly Income | $22,340 | $30,260 | $38,180 | $46,100 | $54,020 | $61,940 | $69,860 | $77,780 |
Single | Married Couple Filing Jointly | |
---|---|---|
No Qualifying Children | $13,660 | $18,740 |
One Qualifying Child | $36,052 | $41,142 |
Two Qualifying Children | $40,964 | $46,044 |
Three or More Qualified Children | $43,998 | $49,078 |
Earned Income
Gross Household Income
Household Defined
Net Worth Test