Local banking key for small biz
Perhaps more than any other time in recent history, community banks have demonstrated the value of personal relationships with business owners. Over the last two months, local bankers worked long hours to help thousands of Oklahoma small businesses apply for Paycheck Protection Program loans to pay their employees and keep operating.
Recent news reports show that states with a strong network of community banks had greater success in accessing the PPP loan money for small businesses. Fortunately for Oklahoma, we have a high number of locally owned banks, compared with other states. This contributed to our state getting a better-thanaverage share of PPP loans; we secured $4.6 B for Oklahoma businesses, or $1,166 per capita compared with $982 in Texas and $902 in Arkansas.
We've heard from many Oklahomans who placed calls to their mega bank, didn't get a return call and turned to a local bank for help. NBC Oklahoma, like most other community banks in our state, didn't pick which customers to serve — we handled them first-come, first-serve and received loan approval for every completed loan application. Bankers across the state worked day and night to help these businesses.
The volume of requests we had for PPP loans and new accounts in 30 days equaled the work we do in about six “normal” months.
In PPP phases I and II combined, NBC Oklahoma helped 504 businesses secure nearly $45M. Our average loan size was just under $89,000. For perspective, that $89,000 to a small business represents two months of salary for about eight employees who earn an average of about $60,000 a year.
Local banks are key to the economic stability of our communities because we support the growth and expansion of local businesses, new developments and startups. The COVID-19 pandemic and PPP loan process have demonstrated the importance of the personal relationships that local banks have built through the years. It is much easier and faster to verify business owners' identities for a loan application when you already know their business and interact with them regularly. That efficiency, combined with a personal touch, is what sets local banks apart from mega banks.
It's rewarding to be a part of stabilizing the businesses in our communities, ensuring that employees receive paychecks and helping business owners make plans for recovery. I am proud and thankful to embody our slogan that we are “People You Can Bank On.”