How to Find a Bank That Can Help You Fund Your Business Startup

A community bank is created to help fuel economic activity. This can help small business startups in a few ways. The Small Business Lending Fund provides qualified community banks with loans that interest rates as low as one percent. Community banks re-loan the money to qualified small business borrowers at a higher interest rate.

Community banks create microloan programs which are designed to capitalize local businesses and create local jobs. For those business owners that do not qualify for financing from traditional financial institution may qualify for financing at a community bank.

Community banks provide financing to not only local small business but to other business friendly banking products and services. Typically, community banks offer free business checking accounts, and you can open a business savings account with as low as $5.00. You will have access to a debit card, online bank, and mobile banking apps as well. Having different ways to access and track your money will make managing the finance of the business revenue easier.

How to Choose the Best Community Bank for Your Small Business Startup

There are several easy to determine which community bank is best for you. The following are some of the most important things you want to look for to choose the local community bank that is best for your small business.

Products and Services Offered – those community banks that offer a multitude of financial services to small business owners are the best ones. They can include loans, lines of credit, and financial services.

Amount Needed to Open and Account – there are lots of community banks that do not require a deposit into the account when first opening it. Community banks give you the option to have a free savings account while at least $50 is needed to open a business checking account. The amount needed to open accounts should be reasonable for your business.

Account Fees – some checking accounts charge fees for each transaction that is made on the account. Each community bank is different on how much they charge per transaction. The fewer the fees a community bank has the better.

Account Minimums – some community banks will require you to have a certain amount of money in your business checking or savings account each month and if you do not, then you will be charged a fee. Be sure to check the account minimums and ask if there are any charges if you do not meet the minimum balance requirements.

Online Banking – the best community banks will allow you to have access to online banking so that you can stay on top your finances at all times.

Mobile Banking – mobile banking is also important to have especially since business owners are always on the go. You can check and track your account from anywhere in the world and can be accessed via your smartphone.

FDIC Insurance Coverage – make sure to find a community bank that has FDIC insurance.

The Bottom Line

Be sure to do your research on local community banks that are right for you. Follow the tips in this article to help guide you find the best one for your small startup business.