Image Retrieved from: http://businessfinancegroup.org/
Financial Capital in reference to community of place refers to the internal and external sources of money, wealth, loans, funds that the individuals in the community have access to or the public funding that the community has access to for projects. One way to measure and assess financial capital in a community is in understanding the general population’s income which assesses their yearly inflow of cash to use for daily items or to save and house value, since this is the largest source of wealth for most people in their housing equity.
The median household income as recorded in 2014 is $121,710 in Severna Park (“Median Household…” 2014). This is significantly greater than the median household incomes in 2014 of $89,031 and $74,149 for Anne Arundel County and the state of Maryland respectively (“Median Household…” 2014). Further, the wealth that Severna Park residents have from equity in their houses performs better than comparable communities. The estimated median house/condo price from 2013 was $462,279 for Severna Park as compared to $280,200 for Maryland(“Median Household…” 2014). It is evident that much of the community of Severna Park is privilege to economic opportunity greater than their county and state.
About 3,937 Severna Park residents are in management, business or finance , which is the highest economic sector of employment in Severna Park (“Occupation by Sex…”, 2010-2014). There are many entrepreneurs and small business involved individuals that need access to credit that big banks, considering the risks of small businesses and start-ups and relatively small returns, will not lend to. So, it is important to have credit access for these small business owners and those that work for small businesses in the community and have institutions that are willing to provide it. The U.S. Small Business Administration has program called the 504 loan program that lends to companies who have after-tax net income of 2.5 million (“U.S. Small Business…”, n.d.). They help invest in the business so that it can grow. The “Business Finance Group” located in Severna Park gives out many loans under the 504 loan program to small businesses in the area (The Business Finance Group, n.d.). This allows for small businesses to grow and accumulate financial capital as well as create more jobs for the local economy boosting human capital.
American Community Survey 5-Year Estimates. (2014). Median Household Income in the past 12 months (in 2014 inflation-adjusted dollars). [Data File]. Retrieved from https://www.factfinder.census.gov
American Community Survey 5-Year Estimates. (2010-2014).Occupation By Sex And Median Earnings In The Past 12 Months (In 2014 Inflation-Adjusted Dollars) For Full-Time, Year-Round Civilian Employed Population 16 Years And Over. [Data File]. Retrieved from https://www.factfinder.census.gov
U.S. Small Business Administration. (n.d.). U.S. Small Business Administration Loan Funds Available to Purchase Commercial Real Estate. Retrieved from https://www.sba.gov/content/u-s-small-business-administration-loan-funds-available-purchase-commercial-real-estate?leavingSBA=http://www.businessfinancegroup.org
Business Finance Group. (n.d.). Business Finance Group. Retrieved from http://businessfinancegroup.org/