FT News Briefing How community banks were small business saviours during the pandemic
Aug 30, 2021
Discover how community banks became lifelines for small businesses during the pandemic, thanks to their deep-rooted relationships in local economies. Learn about the economic turmoil facing Afghanistan and the challenges for global recovery, particularly for emerging markets. The discussion highlights the significance of PPP loans and offers lessons for policymakers from unique banking models like North Dakota's state bank system. All this while keeping an eye on the Federal Reserve's cautious approach to avoid market shocks.
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Daryl's Dedication
- Gate City Bank's Daryl Jorgensen worked tirelessly to secure PPP loans for his customers, many of whom lacked email addresses.
- He personally drove to businesses like hair salons and repair shops to help them access these vital funds.
Community Banks' Outsized Role
- Community banks played a crucial role in distributing PPP loans, exceeding larger institutions.
- Their success stemmed from a proactive approach and a willingness to navigate the program's complexities.
The Power of Personal Relationships
- Community banks' strong personal relationships with their customers proved invaluable.
- Their local presence and understanding of community needs facilitated efficient loan processing.