A Different Kind of Banking
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Business Sense

The Decline of Community Banking?

Growing small businesses often require loans to help fund that growth. Big banks often shy away from lending to small businesses because those small loans are sometimes considered more trouble than they are worth. And because the larger banks are not embedded in the local community where those small businesses operate, they may not be aware of the unique circumstances that may support that business’s growth and ability to pay back the loan.

Because of this reluctance by the big banks, small businesses have come to rely on community banks as a lending source. Community banks are a part of the local neighborhood and know what’s going on in the community. This local knowledge often helps them make intuitive and informed lending decisions that at first glance don’t make sense.

A startling report from the Federal Reserve of Richmond reports that community banks are on the decline, which is bad news for all those small businesses that rely on them.

To learn more about how this might affect your small business Click Here.

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