But life is not always a pretty picture. Yes, if big bank borrowing is the only route. But independent community banks historically have had a good-sized piece of the small business lending pie. We specialize in business lending. We are people who own our own business, and we are in business for people who own their own businesses.
Local bankers agree that they hold several strong cards for business lending.
First, according to Wacknitz, is a community bank's location close to the ground. The bank's board of directors comes mainly from the immediate community, and thus can develop local business. Knowing borrowers personally and keeping tight focus on the immediate community enables Temecula Valley Bank to take more than business plans and pro formas into account when considering loans. Since their founding in the early 20th century as cooperative saving and borrowing societies, credit unions have promoted their ownership by members and close ties to their customer base as the reasons why working individuals should opt for them over a bank. And now, at least three local credit unions have surfaced in commercial lending.