Partner with state and community banks
During a crisis, large banks may lack the necessary incentives to invest in small and medium-sized businesses. Cities may be able to incentivize local banks to create programs focused on supporting small businesses to make it through a recession.
ASSESSMENT
Some questions to guide your thinking
- Which local banks are interested in lending activity?
- Can the city provide banks with a loan-loss guarantee to increase their lending activity?
Reading
Creating broad partnerships to give small businesses access to capital
Brookings Institute 5 minutes
This report highlights the Rapid Response Loan Fund deployed in Indianapolis and made possible by a collaboration between local lenders and the Chamber of Commerce.
- Small businesses were offered federal PPP loans and Rapid Response Loans to stay afloat during the pandemic.
- Local governments, nonprofits, and corporate partners provided funds through a community development financial institution
Reading
Understanding the role of community banks
Forbes magazine 5 minutes
This article reasons why community and regional banks are well positioned to help small businesses stay afloat during the pandemic.
- Community banks have a deep knowledge of their clients and can provide effective engagement.
Reading
Creating broad partnerships to give small businesses access to capital
This report highlights the Rapid Response Loan Fund deployed in Indianapolis and …
Reading
Understanding the role of community banks
This article reasons why community and regional banks are well positioned to help …