Financial capital is defined as the financial resources available to invest in community capacity building. This includes business development, supporting civic and social entrepreneurship and accumulating wealth for future community development. Financial capital can be income, wealth, security, investment, savings, credit and much more. Community development institutions are very important in building financial capital within a community. Community development credit unions are non-profits with cooperative structures with member elected boards. In Worcester, there is the Worcester Credit Union. They provide lifestyle loans, which allow low-income community members to take out loans with low rates and long repayment terms. There are more than 7,000 families in Worcester that earn less than 10,000 dollars a year (American Fact Finder), with the Worcester Credit Union they are able to take out loans through the lifestyle loans program to support themselves to buy groceries, transportation and clothes for the winter. In Worcester, 11.6 percent of the population lives below the poverty line (American Fact Finder). These people cannot afford to support themselves; The Worcester Credit Union offers an affordable way to help with various costs such as funerals, hearing aids, heating, education, auto repairs and any emergency. The purpose of the Worcester Credit Union is to support the low and middle class individuals to ensure a better quality of life through financial support. This organization is crucial so the lower income community members do not have to turn to sketchy loan sharks for money during trying times.
Data Access and Dissemination Systems (DADS). (2016). American Fact Finder – Results. Retrieved from https://factfinder.census.gov
Worcester Credit Union. (2016). Worcester Credit Union Loans. Retrieved from https://www.worcestercu.com