Senators Lincoln, Pryor and Reps. Berry, Ross Announce $160,000 for the Southern Good Faith Fund

WASHINGTON – U.S. Senators Blanche Lincoln and Mark Pryor along with U.S. Representatives Marion Berry (AR-01) and Mike Ross (AR-04) announced today that the Southern Good Faith Fund has received a grant totaling $160,000 for the Assets for Independence Demonstration Program from the Department of Health & Human Services’ Office of Community Services. The Southern Good Faith Fund (SGGF) will use the grant to create Individual Development Accounts (IDAs) for low-income individuals in the Arkansas and Mississippi Delta region.

"Saving for a home, business or higher education is an investment in oneself as well as the wider community," said Pryor. "I am proud to work with the Southern Good Faith Fund on this important initiative that empowers residents in the Delta to wisely invest in order to achieve their dreams."

"This money for the Southern Good Faith Fund will help lift low-income earners out of the cycle of poverty," said Berry. "By teaching individuals how to save for investments, the program allows them to maintain their dignity while at the same time giving them the knowledge and tools to earn their financial freedom. I'm proud to have helped secure funding for such a worthwhile cause that will have a positive impact on so many people."

"I am committed to securing federal resources like this important grant to help our rural communities grow and prosper," Ross said. "I am proud to join with my colleagues to announce this funding which will allow Southern Good Faith Fund to continue their important work for the citizens of Jefferson County."

Individual Development Accounts are designed to encourage savings by matching dollars saved by an individual for long term assets such as a home, higher education, or a business. The accounts will be coordinated by SGFF’s Asset Builders program, which targets low-income and low-asset families in a 32-county region of the Delta. The two main service sites are located in Pine Bluff, Arkansas, and Helena-West Helena, Arkansas. The Asset Builders program and partnering organizations work closely with financial institutions to handle account administration, train staff to work with IDA customers, and provide account information to SGFF and partner staff.

SGFF and partner organizations will open 136 accounts over the course of the five-year grant period. Participants will be required to save a minimum of $20 per month and will be expected to meet their savings goals in six months to three years. Participant savings will be matched at $3 for every $1 saved, up to a maximum of $2,000 in total match funding. They will also be required to attend at least 12 hours of economic skills training.

Since 1999, SGFF has served over 730 active IDA participants. They have saved $352,532, which has been matched with $1,057,596, for a total of $1,410,128. Over the course of the program, participants have saved an average of over $24 a month.

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