Kenny Leonard

Recently a great article appeared in Inc. magazine. Written by Christine Lagorio, she asks the question: How to Choose the Right Bank for Your Small Business

In the article she suggests that a community banks is often the more practical and fitting choice for a small business. Since we live in work in our communities and our shareholders tend to be local a community bank tends to be more understanding of local matters and economies, more supportive of local initiatives and economic drivers and one may argue they are more reliable.

She reiterates the importance of small businesses developing a long standing and mutually beneficial relationship with a local community bank in their area since they more likely to get a loan from their community bank than they are from a large institution.

“Recent research shows that small banks are more likely than large institutions to issue loans to businesses in their community. In fact, though small and midsize banks control only 22 percent of all bank assets, they account for 54 percent of small business lending, according to FDIC data from the third quarter of 2009.”

“There’s also increasing political support for small businesses to partner with small banks. In addition to federal Small Business Association loan incentives, some experts think small businesses could have a hand in solving the credit crunch by simply changing their banking habits – and putting their money in small banks. The Institute for Local Self-Reliance’s New Rules Project has teamed up with Move Your Money, a new initiative by the Huffington Post and Roosevelt Institute to provide resources to companies in switching their business to community banks.”

For the complete article, see the following link: http://www.inc.com/guides/choosing-the-right-bank-for-business.html.

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