Community banks may be smaller in size, but their impact on the local economy is as significant as other big-name institutions or companies. In addition to the personal service and familiarity you expect from your local bank, you may be pleasantly surprised at the number of ways it stimulates economic activity.
1. Fuel Small Business Growth
There’s little doubt small businesses remain the backbone of our economy, both on a local and national level. While small businesses are an essential part of our country’s economic engine, they still face enormous challenges when it comes to funding.
Local community banks, like Peoples National Bank of Kewanee, help fuel business growth by reviewing each business individually and considering more than profit margins. As a result, small businesses typically face fewer challenges getting approved for business loans and lines of credit at community banks as opposed to larger financial institutions, according to the St. Louis Federal Reserve.
2. Create Jobs and Keep Money Local
Community banks need a well-staffed organization, including tellers, mortgage lenders, administrators, and more, to operate a branch. This creates several jobs in a community, which many rely on for their livelihoods.
Community banks keep funds within their local economy. Deposits are likely to be reinvested in local businesses, infrastructure projects, and consumer loans, which create a cycle of economic growth.
3. Boost Homeownership Possibilities
Would-be homebuyers face enormous challenges in today’s economy and real estate market, but community banks offer solutions that can help overcome some of these potential obstacles. The mortgage loan process starts with prequalification. Lenders from community banks work directly with individual buyers, offering loan options and personalized customer service that is often lacking from larger banks.
Sometimes, such as the case with Peoples National Bank of Kewanee, community banks underwrite their own conventional mortgage loans. Not only can this result in lower origination costs, it also offers a more personal and quicker approach for ushering in an approval.
Come see for yourself how a community bank like Peoples National Bank of Kewanee not only impacts the economy but can have a personal impact on your everyday banking.
