Local banks offer personalized and flexible services
One of the advantages of banking with a small and local bank is that they offer personalized and flexible services to their customers, especially small businesses. Unlike large regional or national banks, local banks have a deeper understanding of the local market, the needs and challenges of the small businesses, and the opportunities for growth and development.
Local banks can tailor their products and services to meet the specific needs of each customer, and offer more flexibility in terms of rates, fees, terms, and conditions. Local banks also have more autonomy in making lending decisions, which can speed up the process and increase the chances of approval.
For example, Bank of Estes Park, a small and local bank based in Estes Valley, Colorado, has created an independent $300,000 micro business loan fund dedicated to Estes Valley. This fund provides loans of up to $25,000 to small businesses that may not qualify for traditional bank loans or other sources of financing. The fund aims to support the local economy and help small businesses grow and thrive.
Local banks support the community during crises
Another benefit of banking with a small and local bank is that they support the community during crises, such as natural disasters, pandemics, or economic downturns. Local banks are more invested in the well-being of their customers and the community, and are more willing to provide assistance and relief when needed. Local banks are also more resilient and stable than larger regional or national banks, as they have lower exposure to risky or speculative activities, and have stronger relationships with their customers and regulators.
For instance, Bank of Estes Park has been proactive in helping its customers during the COVID-19 pandemic. The bank has contacted every single loan client to offer them options to skip or move to interest-only loan payments if they wanted or needed it. The bank has also built the fastest Paycheck Protection Program (PPP) platform in the state, and has helped hundreds of locals access the federal funds to keep their businesses afloat. The bank has received the Trailblazing Bank of the Year Award from the Colorado Bankers Association for its efforts in supporting the Estes Valley community during the pandemic.
Local banks foster social responsibility and philanthropy
A third advantage of banking with a small and local bank is that they foster social responsibility and philanthropy in the community. Local banks are more aware of the social and environmental issues that affect their customers and the community, and are more committed to making a positive impact. Local banks often donate to local charities, sponsor local events, volunteer for local causes, and promote local initiatives. Local banks also encourage their customers and employees to get involved in giving back to the community.
For example, Bank of Estes Park has been recognized as the Business Philanthropist of the Year by the Estes Park Nonprofit Resource Center for its contributions to various local nonprofits. The bank has also launched a program called “Banking for Good”, which allows customers to choose a local nonprofit organization to receive a donation from the bank every time they use their debit card. The bank has also partnered with other local businesses to create a “Shop Local” campaign, which rewards customers for shopping at local stores.
