A look at community banks and small business lending
Nov 24, 2016 1:00 AM - The nation's community banks have earned the strong reputation for being the lenders of choice for small businesses. Small businesses play a critical role in our economy as they are the primary innovators and job creators. Community banks understand this because they are small businesses themselves within the larger financial services industry. Community banks now have only approximately 20 percent of the nation's banking assets. While the declining trend in their share of industry assets is challenging, community banks are none-the-less responsible for originating approximately 50 percent of loans to small businesses. This ability to maintain dominance in small business lending highlights the value of community bank customer-focused relationship development that just can't be matched by the largest banks and online lenders.