Running a small business comes with a unique set of challenges, and choosing the right banking partner can make a significant difference. While big banks may have a national presence, many small business owners find that local banks offer invaluable benefits that help their businesses thrive. Here’s why small businesses love banking locally.
Benefits of Local Banks
1. Personalized Service and Relationships
Unlike large financial institutions, local banks take the time to build relationships with their customers. Small business owners often work directly with a dedicated banker who understands their specific needs, goals, and challenges. This personalized attention can be crucial when navigating financial decisions, securing loans, or managing cash flow.
J.D. Power’s 2024 U.S. Small Business Banking Satisfaction Study showed overall satisfaction jumping 20 points to 705, crediting in-branch/phone service and relationship managers.
2. Flexible Lending Options
Access to funding is a top concern for many small business owners. Local banks like FNBMD tend to be more flexible in their lending practices, offering customized loan options that cater to the unique needs of local businesses. They are more willing to consider factors beyond just credit scores, such as the business’s history, community impact, and long-term potential.
In the Federal Reserve’s 2024 Small Business Credit Survey, 54% of applicants at small banks were fully approved for the financing they sought—significantly higher than at large banks or online lenders.
3. Faster Decision-Making
Large banks often have a lengthy, bureaucratic process when it comes to approving loans or making financial decisions. Local banks, on the other hand, have a more streamlined process. Decisions are made by local people who understand the local economy and the business landscape, allowing for quicker approvals and a more efficient banking experience. Our business customers in Lake County have direct access to our decision makers, which is one of the things they appreciate most about FNBMD.
The FDIC’s 2024 Small Business Lending Survey reports 39% of banks can green-light a “small, simple” loan within one business day, and 76% within five days.
4. Investment in the Community
When small businesses bank locally, they are reinvesting in their own communities. Local banks support neighborhood growth by funding over 60% of small business loans to help local projects, sponsoring events, and creating jobs. This creates a positive cycle where the success of small businesses strengthens the local economy.
5. Lower Fees and Competitive Rates
Local banks typically offer lower fees on business accounts, loans, and other financial products compared to larger institutions. They also provide competitive interest rates on savings and lending products, helping businesses maximize their financial resources.
6. Better Customer Support
One of the biggest frustrations of working with large banks is dealing with automated phone systems and long wait times. Local banks provide hands-on, responsive customer service, often allowing business owners to speak directly with a banker who can resolve issues quickly. An ICBA study in 2025 showed 81% of community bank borrowers were satisfied vs. 68% at large banks. At FNBMD, our business customers speak with real people when they call.
7. Tailored Financial Solutions
- Local banks like FNBMD offer specialized financial products and services designed for small businesses.
- Local banks offer business checking and savings accounts that require lower minimum balances than those typically set by large national banks.
- Community banks provide end-to-end merchant services that let small businesses accept and reconcile card and digital payments quickly and securely.
- Payroll and cash-management solutions help owners streamline cash flow.
- Local banks often extend flexible lines of credit and equipment-financing options to help businesses manage cash flow and invest in growth. As of 2024, 73% of community banks offered SBA-backed loans.
For small business owners, working with a local bank means more than just opening an account. Business owners like building financial partnerships that foster growth and stability. The personalized service, flexible lending options, and deep community investment make local banks an ideal choice for small businesses looking to succeed.
If you’re a small business owner in Lake County, Florida, looking for a bank that truly understands your needs, consider making the switch to First National Bank of Mount Dora. Your business and your community will thank you!
FNBMD’s lending team can be reached at 352-383-2111.
FAQs
What counts as a local bank?
Local banks focus on serving a specific city, area, or community. At First National Bank of Mount Dora, for example, we serve residents and businesses in Mount Dora, Sorrento, Eustis, and Tavares.
How fast can I get a decision on a line of credit?
Local banks like FNBMD typically have faster turnaround times because our decision makers live and work in Lake County and they take the time to understand your business. They are more nimble compared with larger banks which allows decisions to be made more quickly.
What kind of community impact has FNBMD enabled?
For the past 100 years, First National Bank of Mount Dora has invested in community initiatives that have helped the area grow and flourish. For example, each year we support worthy causes such as the Lake Cares Food Pantry and Habitat for Humanity, and we act as the Trustees of the Mount Dora Community Trust, which funds nonprofit organizations and initiatives each year.
Are local banks FDIC insured?
Yes, accounts at local banks are FDIC insured up to $250,000.
What are the steps to switch to my local FNBMD branch?
It’s simple! Call us at 352-383-2111 and we’ll walk you through the different business banking options and services. Then visit one of our branches to complete the necessary paperwork. Funding the new account with a check from your old account is often the easiest way to move funds from one account to the other.