Startup Community Banks Flourish in North Carolina

GREENSBORO, NC (March 22, 2018) - After the Great Recession of 2008 and subsequent trend of bank consolidation, North Carolina is now seeing a wave of new community banks sprouting up.

“It is that time in the life cycle of community banks that many of the community banks have merged with other larger organizations, leaving business and community leaders desirous of a local bank with local decision-makers,” Lee Burrows Jr of Banks Street Partners of Atlanta says. “Banks that carve out a particular niche or expertise and utilize cutting-edge technology stand a greater chance to succeed.”

Read the article here.

Integrating Blockchain Technology into Small Businesses

NEW YORK, NY (March 21, 2018) - Blockchain technology could prove to be a game-changer for small business owners in their everyday activities.

With blocks of tamper-proof data, blockchain can validate identity, products, and the entire supply chain for a business, as well as storing digital assets and protecting intellectual property. Business owners can streamline operations with sending money, tracking shipments, and utilizing self-executing smart contracts.

Read the entire article here.

Elon Musk’s Business Growth Hack

NEW YORK, NY (March 20, 2018) - USA Today reveals the key factor behind Elon Musk’s successful approach to marketing: find something unique that people will want to talk about.

Standing out from the crowd is a challenge in today’s market, but successful businesses thrive from highlighting features or events that people will remember.

Musk’s company SpaceX recently launched a rocket with a Tesla onboard into space and successfully landed it back on earth, achieving the ultimate publicity stunt.

Other companies have employed similar awe-inspiring tactics.

“What about the Amazon drone delivery system?” author Steve Strauss writes. “You remember that, don’t you? Of course you do. A few years ago, right before the holidays, Amazon cleverly released videos of a drone delivering packages to customers’ doorsteps. That it hasn’t happened yet has not hurt Amazon’s image as an innovator and go-to shopping hub.”

Read the entire article here with tips on how to utilize these strategies on the scale of a small business.

Study: Businesses with Bank Loans More Likely to Succeed

BOCA RATON, FLORIDA (March 19, 2018) - Businesses that take out business loans from banks have higher rates of success, a new study at Florida Atlantic University found.

The survey of 5,000 businesses determined that companies that took out bank loans reported nearly twice as much revenue as companies that did not pursue financing. Companies financed by personal loans had 57% less revenue than companies financed by business loans from banks.

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Banks Eased Business Lending Standards in 2017

NEW YORK, NY (March 14, 2018) - Good news for business owners: Loan officers reported loosening standards for business loans in 2017, according to a survey by the Federal Reserve.

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In Record Numbers, Business Owners Say it's an Ideal Time to Expand

NEW YORK, NY (February 23, 2018) - Optimism is reaching new heights in the small business world, with 32% of business owners saying that now is a good time to expand - a higher number than all quarterly readings since 1973, according to a new survey by the National Federation of Independent Business.

29% of business owners plan to increase capital spending and 20% plan to hire employees, the survey reports.

Read the entire article here.

Protecting Community Banks From Consolidation

NEW YORK, NY (February 22, 2018) - Consolidation in the banking industry may reap rewards for investors, but it also restricts access to financial services for many communities throughout the United States.

Community banks support many geographic areas underserved by larger banks; more than 16 million people, or one in three counties, rely exclusively on local banks and have no physical access to large banks, according to American Banker. Local banks fund over 60% of small business loans, while holding only 20% of all banking assets.

“Community banks are not only more highly capitalized than larger institutions and therefore better equipped for economic downturns, but their local focus and accountability make them distinctly pro-consumer. These local institutions operate a relationship-based business model that incentivizes customer service and stewardship... [they] reinvest their proceeds into the communities in which they operate, promoting economic growth that begins at the local level,” American Banker reports.

Read the entire article here.

Establishing Credit History for Immigrants: Uncovering an Untapped Market

NEW YORK, NY (February 21, 2018) - Recent immigrants to the United States face an enormous hurdle to building a new life: a nonexistent credit history.

Credit cards, bank loans, cars and real estate all require a solid credit score, and yet immigrants arrive with a blank slate in the American credit score system, regardless of their financial history abroad.

“You could be a billionaire in Australia, come over here and try to apply for a credit card. You're probably going to get rejected if you have no credit footprint in this country,” says Lend Academy founder Peter Renton.

A number of FinTech companies have evolved to serve this overlooked market and maximize opportunities for foreigners to contribute to the American economy. Nova Credit estimates that 10 million immigrants in the past decade would be categorized as prime to super prime if their international credit records were accessible.

Read the entire article here. 

Integrating FinTech and Community Banks

CHICAGO, IL (February 20, 2018) - Community lenders are increasingly finding success in blending the speed and efficiency of financial technology with the personal connection and attention of community banks, according to a new article in American Banker.

"Small-business owners typically want to do business with local financial institutions. At the same time, they don’t want to subject themselves to a longer and clunkier process,” Joel Pruis of Cornerstone Advisors says. Small business owners are “on the go and like to do things digitally, but they also like to have that face-to-face option as well.”

Chicago’s Marquette Bank successfully digitized its lending process and saw its credit memo creation time shorten by 25%.

Read the entire article here.

NYC Program Provides Free Legal Services to Small Business Owners

NEW YORK, NY (February 16, 2018) - NYC’s Department of Small Business Services launched a free service providing legal advice regarding leases and real estate issues for small business owners.

“Small businesses are the economic heart and soul of this city and they deserve every opportunity to succeed. The Commercial Lease Assistance Program will give small business owners the help they need to resolve legal issues without driving them out of business,” Mayor Bill de Blasio said.

Read the entire article here.

A Beginner’s Guide to SBA Loans

NEW YORK, NY (February 15, 2018) - Understanding the many financing options available is essential for entrepreneurs looking to expand their business. ForexTV.com presents an introduction to Small Business Administration loans, which can be a good option for business owners who have already been turned down for a loan application

Read the entire article here.

Entrepreneurship Program Launches to Support Latino Business Owners

SAN BERNARDINO COUNTY, CA (February 14, 2018) - The Mexican and Guatemalan consulates in California partnered to create an eight-week entrepreneurship program for Latino entrepreneurs in California.

“We’re told that we are a burden to this country,” said Guatemalan Consul Billy Munoz. “But on the contrary, Latinos are a huge help to the economy. And we are hungry to contribute to our adopted homeland that is the U.S.”

Read the entire article here.

Business Tips for Student Entrepreneurs

BROOKLYN, NY (February 12, 2018) - Starting a business as a student is an exhilarating challenge that requires a strategic approach. Entrepreneur offers a guide to smart financial tips for students starting out in the business world.

Read the entire article here.

Time-Saving Technology for Entrepreneurs

NEW YORK, NY (February 9, 2018) - Running a small business is a life-consuming career choice: one third of small business owners work more than 50 hours per week, and one fourth work more than 60 hours per week, according to a New York Enterprise Report poll.

GirlTalkHQ presents the latest innovative tools to run your business with the help of automation and artificial intelligence.

Surprisingly, email takes up more time than any other activity, the article reports. 32% of business owners’ time is spent on email, with unscheduled communication taking the longest. Smart email tools and digital assistants are two resources that can save hours of time each day so that business owners can focus on high-level tasks.

Read the entire article here.

Women and Minority-Owned Businesses are Thriving in Houston

HOUSTON, TX (February 9, 2018) - Minority and women business owners are on the rise and inspiring new business initiatives in Houston.

Women-owned businesses in Houston grew 70.4% in the last ten years, boosting their employment by 34.5%, according to the American Express State of Women-Owned Businesses Report.

A 2016 US Census Bureau study found that 30.8% of businesses in the area are owned by minorities, ranking Houston in sixth place of all metropolitan areas in the United States.

Numerous community and business organizations are stepping up to support this surge of small businesses. The Houston Women’s Business Enterprise Alliance offers seminars and courses and fosters community among women entrepreneurs.

“We want the small-business community to know that you’re not out there alone,” WBEA President April Day says. “There are organizations here to support you, and there are small businesses that are going where you’re going and have been where you want to go.”

Read the entire article here.

Small Businesses are Booming in Chicago

CHICAGO, IL (February 7, 2018) - Eighty-eight percent of Chicago small business owners plan to expand their businesses this year, up from 72% last year, according to the Chicagoland Small Business Economic Outlook Survey. 71% of business owners expect higher revenue in 2018 and 42% plan to hire full-time employees this year. However, top concerns include hiring skilled employees and managing healthcare and cybersecurity.

Read the entire article here.

Savvy Advertising Strategy for Small Businesses

NEW YORK, NY (February 6, 2018) - Advertising is essential for any company to spread brand awareness, and yet most small businesses don’t have an advertising professional on staff or understand how to maximize its use.

Forbes presents a guide to advertising for small business owners with a focus on doing a lot with a little - using resources and time intelligently and effectively.

“Creativity has nothing to do with size of your budget or team. As Vahbiz has seen with many of her nonprofit clients, being creative with where you spend what few resources you have is the key to success. Take the time to think about what you have and how to use it best to grab headlines,” Anuja Khemka writes.

Read the entire article here.  

SBA Study Calls For More Community Banks and Credit Unions

NEW YORK, NY (February 5, 2018) - A new study by the Small Business Administration finds that small business lending has grown significantly faster at small banks since the 2008 financial crisis, and encourages the establishment of more community banks and credit unions.

“Regulators should take steps to encourage the formation of new community banks, which are specialists in small business lending,” the study recommends.

Credit unions are also highlighted for their impact in the world of small business lending.

“Credit union lending to small businesses has more than doubled from 2008 to 2016, from $30 billion to $60 billion,” the article reports.

Read the entire article here.

Small Business Owners Have Low Confidence in Retirement Prospects

NEW YORK, NY (February 2, 2018) - A new survey by Paychex indicates that 69% of small business owners have little confidence that they will be able to retire comfortably.

Only 20% of small business owners confirmed that they were very confident in their retirement savings, reflecting a nationwide trend of low confidence in retirement security.

Read the article here.

Community Banks Key for Small Business in Rural America

WACO, TX (February 1, 2018) - The higher the number of local banks in a rural area, the greater the chances that local businesses have opened or expanded with the help of small business loans, a new Baylor University study reports. The study suggests that the local bank is key to economic development in rural communities.

“It allows local business owners in nonmetropolitan America greater access to the types of capital that often prove most useful and affordable to start and maintain businesses,” writes lead author F. Carson Mencken, Ph.D.

According to Newswise, the benefit of conventional loans “is that they allow businesses to be more flexible and weather sales downturns. They also do not require that business owners invest large portions of their personal savings. That enables owners to maintain a personal reserve to weather the early years of a new business, when profits tend to be small or absent.”

This raises concern due to the sharp downturn of local banks in rural areas - from 80% in 1976 to 20% at present day, as reported by the US Commodity Futures Trading Commission.

Read the entire article here.