Small Banks Pack A Whollop For Small Business Finance

Skye Leist
July 03, 2011

We recently moved our offices from southern California to southern Oregon, and we have made a few discoveries, most notably that small banks actually like small business. This is revolutionary to us since everything in California is BIG — big business, big buildings, big leases, big investments. California banks can’t afford the luxury of working with truly small businesses because they can’t make enough profit to pay their Big office leases and Bigger salaries.

Oregon is absolutely refreshing. I’ve seen more bank ads directed at small business in one week than I saw for years in California. Several banks, like the local Umpqua Bank, even advertise business loans as low as $10,000. I didn’t think such a thing existed.

There is a real message here for small businesses. Understand what your local bank can, and cannot, do for your business. A small fish in a huge frying pan will get burned time and time again. If you are that small fish, seriously consider taking your business to a smaller geographic area, one with a lower cost of living. Look at the local banks and see what they can offer. We were astounded, and you will be too.

And don’t feel that smaller towns won’t be able to provide the kind of talent or resources that you need to grow your business. On the contrary, they probably do. And if you need specialized skills, draw them in with the great outdoors, the sports fishing, the skiing, the great place to raise a family theme. You will end up paying less for your employees, giving you the option of being far more competitive in your market, and you will have happier people on staff.

Yes, we love Oregon, and the small banks here are great for small business finance. But we suspect that there are areas like this all over the country. Open up your eyes and really look at your options. Your business could be a lot closer than you think.

p.s. — The bankers are also very nice here, but that is a whole different issue.

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