Traditional thinking says that the risk banks make lending to small companies rarely outweighs the profits. Recent relationships between the small business community and fintech startups are causing lenders to reevaluate this line of thought.
Although there was a slight dip in December, the NFIB (National Federation of Independent Business) Small Business Optimism Index saw one of the highest yearly survey readings in 2019 since the creation of the survey in 1973. According to the December survey results, “an increased number of small business owners reported better business conditions and expect higher nominal sales in the next three months,” and “small businesses continued to hire and create new jobs with actual job creation.”
Small Business Saturday is an annual tradition that occurs the Saturday after Thanksgiving. Locals are encouraged to “shop small” and show support to the diverse businesses in their community. The holiday was created by American Express in 2010 and has seen rapid growth every year since.
Community banks can have a tremendous effect on the success of the small businesses around them. For decades, community banks have been the backbone to entrepreneurship in America and are critical in the start-up phase of small businesses. Community Banks are responsible for over 40 percent of all small business loans awarded in America1. This shows that small businesses are more likely to receive the help they need from community banks than their larger counterparts.