When it comes to financing, community banks have been providing support to small businesses for decades. However, a problem is emerging that’s affecting small business: Community banks are closing and consolidating due to pressure from regulation and an uneven lending playing field. Here’s what to know about how the decline in community banking might affect your small business.
What is community banking?
A community bank is an institution that caters to a smaller, local audience rather than the large national audience of larger banks. These banks typically develop close relationships with their customers, and this personal connection is often a selling point for community banking.
Notably, there’s no one accepted size that defines the term “community banking.” In general, though, a community bank has just a few branches, all of which are located in the same city.
Dispatches From The Front 