WASHINGTON--Today, Capital Area Asset Builders (CAAB) and Citi Community
Development formally announced the new Jobs & Entrepreneurship Stimulus
Account (JESA) program, an accelerated Individual Development Account (IDA) savings program for
individuals who agree to save $500 towards their small business or job training
costs.
As Washington, DC grapples with a high 10.4 percent1 unemployment rate and with poverty
rates in some communities in the city’s Northeast and Southeast sections
exceeding 30 percent,2 there is a critical need to address common
impediments to employment, including the lack of necessary education and
qualifications to enter skilled labor fields. These hurdles are often compounded
by the high costs of required training, certification, and equipment, creating
an impenetrable barrier to employment.
The accelerated year-long JESA program, which commenced on October 1, is
mitigating those costs by combining required financial and job-readiness
training with a savings match. For each participant, after program requirements
are met, CAAB will match up to $500 in client savings at an 8:1 rate.
Participants who complete the program will be not only better equipped to manage
their finances and enter the workforce, but will also be bolstered with up to
$4,500 (including initial client savings) to be used for additional job training
or small business development costs.
CAAB projects that the JESA program will serve 250 to 300 underemployed
Washington-area residents, preparing them for jobs or entrepreneurship while
reinforcing their financial capacity to purchase tools, uniforms, and other
trade equipment. JESA participants must complete a rigorous program involving a
minimum of 14 hours of financial education and jobs or entrepreneurship training
with CAAB and a CAAB-approved partner, as well as attend financial coaching
sessions as needed. Following the training period, participants will continue to
receive coaching from CAAB and support through its “Financial Empowerment
Circles,” which are peer-led groups of CAAB clients working towards economic
self-sufficiency.
“With the JESA program, we help enrollees to execute their savings and
business goals by providing hands-on support,” said Maurita Coley, Executive
Director of CAAB. “While participants are saving, we give them financial
education training and one-on-one financial coaching, and our partners give them
entrepreneurship and job training, all to help them to succeed in their
businesses, get a job, or get a better job.”
“We need to focus on providing our residents with clear pathways to
self-sufficiency,” said Julius Ware, President of Ward 7 Business and
Professional Association and a CAAB Board Member. “The JESA program is an
innovative approach that helps Americans save and get back to work, giving them
the tools needed to weather tough economic times.”
JESA makes innovative use of funds from the U.S. Department of Health and
Human Services’ Assets for Independence (AFI) program. CAAB has been approved
to use $600,000 in AFI funds that are maturing and would otherwise be forfeited,
along with an equal amount of locally-raised matching funds to implement the
JESA program. Citi Community Development is providing an additional $200,000 to
support the JESA program and a thorough evaluation focusing on the opportunity
for replication.
“Too many members of this community are locked out of the job market because
they don’t have the training or the resources to prepare for and access job
opportunities,” said Diana Meyer, Citi Community Development State Director for
the Washington, DC metro area and a member of CAAB’s Board. “Citi has a record
of finding innovative ways to create pathways to self-sufficiency, and the JESA
program exemplifies that commitment.”
Savings accounts for participants, who must meet federal income requirements
and must have some earned income, will be held at local Citibank branches.
About Capital Area Asset Builders
Capital Area Asset Builders (CAAB) expands financial inclusion in Washington,
DC through direct service programs and strong partnerships with homeownership
and microfinance organizations. CAAB has been a provider of Individual
Development Accounts (IDAs) in the DC metro area since 1996. Over 800 successful
graduates collectively have saved more than $800,000 and bought their first
homes, started businesses or continued their education. Each year, CAAB
organizes hundreds of volunteers to provide free tax preparation to help
underserved, working families increase their financial assets through the Earned Income Tax Credit (EITC) and other tax credits. In
2011, CAAB volunteers processed 5,695 total tax returns, 35 percent of which
claimed the EITC. CAAB participates as a financial educator for Bank On DC
and also offers its own financial education course – Money Management
101 - and provides one-on-one coaching. Overall, CAAB’s financial education
programs served nearly 1,000 people in 2010. In 2010, CAAB organized a very
successful local policy forum on asset-building in a down economy and a similar
community forum is planned for April, 2012.
About Citi
Citi, the leading global financial services company, has approximately 200
million customer accounts and does business in more than 160 countries and
jurisdictions. Citi provides consumers, corporations, governments and
institutions with a broad range of financial products and services, including
consumer banking and credit, corporate and investment banking, securities
brokerage, transaction services, and wealth management.
Additional information may be found at www.citigroup.com | Twitter: @Citi | YouTube: www.youtube.com/citi | Blog: http://new.citi.com | Facebook: www.facebook.com/citi | LinkedIn: www.linkedin.com/company/citi
About Citi Community Development
Citi Community Development (CCD) is leading Citi’s commitment to achieve
economic empowerment and growth for underserved individuals, families and
communities by expanding access to financial products and services, and building
sustainable business solutions and innovative partnerships. Our focus areas
include: commercial and philanthropic funding; innovative financial products and
services; and collaborations with institutions that expand access to financial
products and services for low-income and underserved communities. For more
information, visit www.citicommunitydevelopment.com.
1 Source: Washington, DC Department of Employment
Services
2 Source: CAAB
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