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Why Small Companies Thrive with Community Banks

Recently, a New Jersey community bank furnished a construction and renovation loan to a nearby historic estate.  The loan helped the estate’s owners build a new ballroom. Working with the bank, the owners gained more than a loan. The bank’s knowledge of the local market and construction industry helped them create a ballroom well matched to the area’s weddings market, ushering in increased lucrative summer bookings. 18-LB-548 blog photo

This a perfect example of why small companies – whether manufacturers, car dealers, tech or law firms, independent stores or others -- thrive working with local community banks. Local market knowhow and willingness to view customers as neighbors, not numbers, help community banks provide intangibles that go beyond lending.

Here’s how community banks help small companies flourish:

  • Community bankers don’t forget that as small companies bloom, so does the nation’s economy. They are, after all, local businesspeople themselves. As a result, small companies are more likely to enjoy a service-oriented partner willing to listen, communicate and lend.
  • Community banks answer to Main Street. Larger banks answer to Wall Street shareholders. However, community banks are deeply engaged in their towns, making them more accessible, knowledgeable and responsive to customers.
  • Timely capital access can spell the contrast between business success and failure. Fast loan decisions help small firms get a leg up on rivals.  Community bank loan decisions are made locally, so lending is often more timely.
  • Because they build relationships with small business customers, community banks are more ready to loan. A 2017 survey by the Federal Reserve Bank of New York found large banks approved just 58 percent of applicants, whereas small banks (many of them community banks) approved 76 percent.

Counsel.  Capital.  Community focus.  All these community bank benefits help small companies thrive. Is yours among those flourishing with help of community banks?

Which community banking benefit is likeliest to help your company bloom?

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