Microenterprise Program

ERI partnered with the Haitian Coalition of Somerville and the City of Somerville to assist low-income individuals to start or grow a small business with matched investment funds.

The Office of Community Services, within the Administration for Children and Families, selected ERI to participate in a national Individual Development Account (IDA) demonstration. IDAs are directed matched savings accounts to allow low-income working households save earned income to eventually make a qualified withdrawal to purchase a home, fund post-secondary education or start a small business. The goal of the project is to help low income families accumulate assets during the two-year program.

Eligible Individuals:

• TANF recipients
• Households that meet the EITC Earned Income Guidelines:

  Without a child: $11,060 ($12,060 for married filing jointly)

  With one child: $29,201 ($30,201 for married filing jointly)

  With two or more children: $33,178 ($34,178 for married filing

  jointly)

• Preferably Somerville residents

Match Structure:

• Participant savings are matched with local and federal funds (1:2)
• Participant would save up to $2,000, this would be matched with local money of up to $2,000 and federal money of up to $2,000 totaling up to $6,000 for the participant at the end of the program
• Individual would save up to $19.23 a week for two years

Participants take financial literacy courses that cover how to create a home budget, how to save money, among other financial topics. Participants are also counseled on creating a business plan, and where to go for additional resources on legal issues, taxes and securing business loans.

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