Small businesses across the country are facing many challenges due to the Covid-19 virus. For some of them, this means complete management and operational restructuring due to the restrictions in place to prevent the spread of this abysmal virus. Many business owners will probably not be able to succeed solely on their own.
Now that the United States Government has implemented the CARES Act, a historic stimulus bill, there might be recovery yet for the extreme slow down in business one may experience. However, too many people are having difficulties with banks granting them the loans this stimulus was intended to provide. Some people are surprised to find that their community banks are offering them financial assistance with much more ease than their bigger banks.
Why Should I Sign with a Community bank?
Community banks have always been the strongest supporters of small businesses. Even if they have lower amounts of assets in comparison to big banks, community banks are still lending $3.5 billion to local businesses every year. Their approval rates from small business applicants are often nearly double than those of the bigger banks. When going to a local bank as a local business owner, you often find brokers who have a better understanding of the environment in which you conduct your business. Since they are familiar with the expectations and challenges you may face, they are more likely to lend to new business owners, than big banks.
What are the Benefits to Working with a Community Bank?
Since local banks have their familiarities with their communities, there are series of benefits to have when you work with them instead of a big bank. You should expect your relationship with your broker to be much more personal as local banks pride themselves in serving the people within their communities. This will lead to a higher quality customer service with an emphasis on flexibility and attention. They will be able to share their connections with local service providers with you.
What Kinds of Services can a Local Community Banker Offer?
Community banks offer many of the same services as large banks such as online and mobile banking. In fact, the decisions made will be better suited to your business as they will be able to customize their services to match your specific needs. These decisions will not only be faster because they will not go through the barriers imposed in a corporate environment, but they will not be simply made based on a credit score, as brokers use their knowledge of their area and your personal qualifications to make these decisions.
One can even argue local community banks are much more stable than their larger competitors. They are often held to a higher standard of ethics, and we have seen many big banks close entire branches due to legal scandals. Local banks are mainstays in their communities and will often invest in their customers.