On this morning’s WJR Business Beat, Jeff offers insights into why entrepreneurs and small business owners alike should consider banking at one of the 5,000 or so small business banks across the country, rather than big banking institutions.
Of the many benefits, banking with a local institution offers:
- Support to your local economy
- Local knowledge and familiarity
- Personalized service
- Community involvement
Jeff dives deeper into all four in the segment below:
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“Small businesses are the lifeblood of the American economy and it’s small local banks that are the lifeblood of small businesses here in America. So, make the choice to bank small.”
– Jeff Sloan
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Good morning, Paul.
Earlier this year on the Business Beat, we featured how small banks were emerging as better options to represent businesses seeking PPP loans from the SBA because they were able to provide more personalized attention to their clients and shepherd them through the process directly with the SBA more effectively than the bigger banks are.
And indeed, several small businesses I’m associated with had their applications sit idle at our regular big bank, but then when we switched to a small, local bank, our loans were approved right away. But there is more reason to consider banking at one of the 5,000 or so small business banks across the country.
Here’s some reasons why.
Number one, banking with a local institution helps support your local economy. Money spent with a locally-owned bank, tends to stay at work in your local community to beautify and enhance that local community.
Number two, local knowledge and familiarity. Because small, local banks are engaged in local matters, these local banks may make doing transactions easier. That’s particularly true if you need to borrow money. For example, mega banks might be unwilling to fund your local business because they may be unfamiliar with it. Let’s say investment property locally, an agricultural loan. But local banks who are familiar with the local economy and the business sectors typically associated with it are able to facilitate transactions much more readily than our bigger banks.
Number three, personalized service. Local banks typically provide more personal service than big banks do. There’s a simple reason why. As a customer to a local, you mean more than you do to a big, big banking institution. It’s not uncommon to work with the same person over time at a local bank and bank staff can even learn about your needs and suggest bank products that you may not even know to ask about.
Number four, community involvement. Given that these local banks are more invested in the local community and they often give back, you’re likely to see a local institution’s logo at charity races, or other events locally, signaling that they have contributed money or other resources to help make the event a reality.
Look, small businesses are the lifeblood of the American economy and it’s small local banks that are the lifeblood of small businesses here in America. So, make the choice to bank small.
I’m Jeff Sloan, founder and CEO of StartupNation.com, and that’s today’s Business Beat, brought to you today by Dell Technologies, on the Great Voice of the Great Lakes, WJR.