How Your Business Benefits from Local Lending

Business owners are familiar with the importance of community support. So why isn’t every owner lining up to get their commercial lending from their local bank? Obtaining loans from your local financial institution can create greater opportunities for your business and the economy.

Local Banks Offer the Same Lending Products

While your local bank may be small compared to national chains, the list of products they offer is not! In fact, community banks offer most, if not all, of the same products and services as larger institutions.

Greater Vested Interest in Community Growth

Businesses, especially small businesses, are familiar with the importance of buying local. The employees at your community bank are your neighbors and patrons of your business and are interested in seeing your business succeed. During the COVID-19 pandemic, community banks were instrumental in helping Black-owned businesses access PPP loans. Additionally, many banks give back directly to your community. Pioneer’s Charitable Foundation alone has surpassed $1 million in donations to Capital Region organizations.

Customized Solutions

With many large banks investing in technology, local banks are firm in their commitment to personalized support. That means when we’re making decisions about your loans, we’re looking at you as an individual with unique commercial needs. We won’t sell you on a plan that’s made to fit everybody; we’ll work to customize a solution that fits your business’s goals.

The Numbers Support Local Banks

The bottom line is important to business owners, so let’s get down to brass tacks. In 2021, small banks approved about 20.1% of small business loans, while large institutions approved just 14.3% (source: Biz2Credit). According to the FDIC “Community banks hold 39 percent of the industry’s small loans to farmers and businesses, making them the lifeline to entrepreneurs and small enterprises of all types.” In 2020, businesses dealing with loans from small banks reported 14% higher satisfaction rates than those dealing with large banks (source: Small Business Credit Survey).


If you’re expanding your business and looking to fund it through a loan, talk to a Pioneer representative about how we can enable your growth.

The material provided on this website is intended for informational purposes only. Links to other web sites are provided for reference and do not constitute a referral or endorsement by Pioneer or its affiliates. Please note that such material is not updated regularly and that some of the information may not be current. It is recommended that you consult with a financial professional for assistance regarding the information contained herein.