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A few years ago when the world shut down and every small business was running to their banks to get their PPP loan, customers soon realized their BIG bank was not really there to help and they were forced to look elsewhere. 

Many of them went to small local banks or an online channel to help with paperwork so they could get funding ASAP for their business.  Small banks were winning over so many new customers and those customers moved over their deposits and started to bank with these small banks that came through when they needed help the most. 

Small banks were the HERO, and many customers realized the role they play and the level of service/attention that exists with small banks.

Now comes along the SVB drama, putting a lot of bad press and pain on the small banks.  The fear and confusion are making some people pull all their money out and put it into the larger banks.  The small banks are having to do damage control and bring confidence to their customers in a matter of days.  On top of this, ALL banks have pulled back in 2022 on lending due to market conditions and high rates that are slowing down lending demand.  

When you drive around anywhere in the US and you see all those small businesses, small hotels, restaurants, start-ups, etc. majority of the business or small real estate deals are done by small regional banks.  Small banks are the bloodline to small businesses, local real estate deals, startups, agriculture, wineries, ma, and pa local businesses, and the list goes on and on.  Big banks know the importance of these small banks and what purpose they serve to all these communities to thrive and get funding.  

My wife and I have been doing commercial and real estate financing for about 20 years.  Trust me when I say, if these small banks go away or even tighten up more, this is going to really have a NEGATIVE impact on local business and real estate transactions.  We use small banks on so many transactions for our clients in California and without them, lots of deals would not get done.  It pains us to see this negative press and people fleeing to BIG banks.  We need small banks like we need air and when customers freak out from bad press this is only making the situation worse.  

It is important to support your local small banks that are there to help our local communities.  They were there to support so many of us during the shutdown, on your new business venture, your tough real estate deal, your boutique hotel, your construction deal and the list goes on.  

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