Department of Human Services

Families First Online Policy Manual

Low Income Entrepreneurial Account




Table of Contents


All Families First participants who are self-employed (as defined below) qualify to have a Low-income Entrepreneur Escrow Account administered by a Community Based Organization (CBO) in which profits that are not reinvested in their business can be escrowed. These profits and the interest earned, up to $5,000, would not be counted towards a Families First participantís resource limit for the Families First, Food Stamp and Medicaid programs.However, when a participant is no longer in the Families First program, the funds in escrow are then applied to the familyís resource limit when calculating continued eligibility for Medicaid and Food Stamps. The escrowed profits are placed in a micro-lending intermediary program.


In order to exempt the escrow profits up to $5,000, a participant must:


        Be a Families First participant and be in compliance with the work/work related requirements in his/her Families First PRP.


        Be self-employed (if an individualís income, divided by the minimum wage, equals at aminimum twenty hours per week, the individual is considered to be self- employed), and


        Be enrolled and participate in a micro-lending program that provides entrepreneurship training, technical assistance and peer support.


Only the amount in escrow over $5,000 is counted as resource for an eligible participant.




Table of Contents