Here at Grimes Chamber & Economic Development, we have the privilege of working alongside a wide range of businesses and organizations, each contributing in meaningful ways to the strength and character of our community.

This month, we’re pleased to feature a perspective from one of our own leaders. Chris Watkins, Board Chair of Grimes Chamber & Economic Development and a representative of Raccoon Valley Bank, shares insight on the important role local financial institutions play in supporting growth, small business success, and community vitality.

The largest financial institutions dominate the nightly news, but when is the last time that you read or heard about them being involved in a local project?  In contrast, local financial institutions are the go-to for local developers and small business owners.

This is especially true in the small business and agricultural communities.  According to the Independent Community Bankers of America (ICBA), community banks provide approximately 60% of small business loans and more than 80% of agricultural loans.  These loans tend to be more local and personalized with the dollars reinvested locally.  Local financial institutions employees are more likely to live and work in the communities that they serve, causing a “multiplier effect” that boosts the entire local community.

Community growth creates a business vacuum that new business owners are eager to fill.  Whether it’s a new retail store, a restaurant, or a local laundry mat, small businesses are the lifeblood of a community’s character and economy.  Bankers in growing areas often serve as advisors, helping business owners navigate the financial complexities of expansion. This support ensures that the economic benefits of growth are distributed among local owners rather than being entirely absorbed by national chains.

Beyond lending, local financial institutions are deeply invested in the social fabric of their neighborhoods. Their employees and executives typically live in the same communities they serve, often sitting on the boards of local nonprofits, sponsoring school sports teams, and leading civic improvement projects. Furthermore, because their success is tied to the town’s success, these banks are incentivized to reinvest local deposits back into local projects.  In addition, local financial institutions are consistent contributors to community projects, both financially and through allowing employees to volunteer.

Please keep this in mind the next time that you consider applying for a mortgage refinance with one of the large online providers or look to open a new checking account for the local Girl Scout troop.  Consider your neighbors and the institutions that are contributing heavily to the continued improvement and growth of your community.  They are not able to do those things without your business!