Over the past 5 years my company's focus has been on helping banks clean up their balance sheets. Our interest is not on the 200 or so major money center banks, many of which I can see from my office window. We focus on the 6,800 other banks in the US, the local community banks that seem to have been forgotten over the past few years, the ones that were not helped by TARP, Warren Buffet or sovereign debt funds around the world. My company invests in the community banks that help businesses get started and keep people employed in small towns all over the US.
"In America, small business is a big deal." - Bob Beauprez
Post 2009, community banks had some big problems to deal with, and they put their heads down and worked on them. Unlike New York City, many of the towns in which these banks operate did not turn around as quickly. In some cases it's a little bit of a catch-22. Before a small town in Kansas can rebound, the local bank that finances new businesses needs to be ready to lend again.
Interestingly enough, as much as NYC seems to be completely turned around - some people even say it is in a bubble once again - when I talk to bankers across the country I do not see the same optimism. I see lights starting to shine but no significant growth yet.
"Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has." - Margaret Mead
Below is a link to a great article about the value of community banks in the US economy. Please read it. Until smaller cities and towns across the US start to revitalize their local banks, we will probably continue to see hot activity on the coasts and little in between. Paying attention to the in-between is necessary to achieve a vibrant US economy.
Please share your stories about how a community bank helped you start your business.
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