MonJa Launches Advanced Fraud Detection Feature for Safer Document Analysis. LEARN MORE

[vc_row][vc_column][vc_column_text]Read time: 6 minutes

[/vc_column_text][vc_column_text]In this article, we cover some inspiring examples of how some Community Banks and Credit Unions went above and beyond to support local businesses, their communities, and employees during the COVID-19 crisis. 

The tanking of the global economy has ensured more severely on small local businesses. Bigger enterprises are almost always able to fall back on national and international banks (and the Fed!) for re-establishing themselves after a setback but when it comes to small enterprises, banks and financial institutions seem to pull back more often than not – the obvious reason being the risk factor coming with financing smaller, local businesses. While helping the recuperating economy, financial institutions cannot overlook small businesses which is more than 40% of the economy. Despite their significance, small businesses do not get the support that they deserve. 

Does that mean small businesses are doomed to be ill-fated? Well, perhaps not as long as credit unions and community banks continue to support them. 

[/vc_column_text][vc_single_image image=”11594″ img_size=”large” add_caption=”yes” alignment=”center”][vc_column_text]The Role of Community Banks and Credit Unions in Supporting Small Businesses

When it comes to supporting small businesses in the current recession, credit unions and community banks have fared much better as compared to bigger financial institutions. 

[/vc_column_text][vc_column_text]Community Impact of Credit Unions and Small Community Banks during Coronavirus 

Community banks and credit unions have been on their toes ever since the COVID-19 crisis began, assisting their members as much as possible. The financial support provided by community banks and credit unions has assisted more than 4.5 million small businesses with PPP loans. The PPP brought over $512 billion into the economy to keep small businesses running despite so many unforeseen effects of the pandemic. 

Below are some specific examples of community banks and credit unions going above and beyond: 

The Phoenix-based credit union, OneAZ, donated 40,000 N95 respirator masks to the ICU at Banner Desert Medical Center. The center is treating patients diagnosed with COVID-19.  OneAZ has also pledged $200,000 to COVID-19 community impact grants for region’s non-profits. “In these difficult times, support from local businesses and our community is helping Banner Health in so many ways as we work to keep our patients and our health care workforce safe. 

SECU of North Carolina and the SECU Foundation is coming up with $10 million as COVID-19 disaster relief. Both the bodies have pledged $5 million each. This is one of the largest relief funds (from the credit unions sector) since the beginning of the pandemic. The donation is aimed to assist the state non-profits in providing food, shelter, and other financial assistance to those in need due to the pandemic and the recession. The donation is also meant to support frontline healthcare workers. SECU, which has nearly 2.5 million members, is confident that the donations will help provide essential needs and services in its local communities and will also help boost morale among people.

MCUF announced Community Crisis Support Grants in April. These grants were pledged for supporting and enhancing the community outreach initiatives during the pandemic. The Foundation has donated nearly $101,707 in 28 grants. The total impact turned out to be more than $200,000 since these grants supplemented credit union investment. The grants were given individually to credit unions and also to cooperative groups and chapters of the credit unions. The initiatives include a wide range of causes such as protective gear and food for frontline workers, food deliveries in food deserts, financial support for a women’s shelter, and financial education for the students whose school year was cut short.

How Small Community Banks are Keeping Workers Safe While Resuming Business 

The economy is opening up gradually but most businesses (including banks) are treading carefully when it comes to returning to offices. Here’s how some of the regional banks are setting examples for reopening.

What Banking Institutions Can Learn from Local Financial Institutions 


Community Banks and Credit Unions have been a great blessing for small local businesses that were left stranded by the big banks after the 2008-09 economic recession. Credit unions and community banks already have a rich history of powering local financial services and community welfare. In times like these, where two crises (coronavirus and recession) are still prevailing on a global scale, local/regional financial institutions are changing the narrative by being the first one to respond to the needs of local small businesses. [/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width=”1/2″][vc_custom_heading text=”Request Statement Spreading Automation Demo” font_container=”tag:h5|font_size:20|text_align:left” google_fonts=”font_family:Raleway%3A100%2C200%2C300%2Cregular%2C500%2C600%2C700%2C800%2C900|font_style:700%20bold%20regular%3A700%3Anormal”][vc_custom_heading text=”Our portal is designed for banks & lenders to help speed up commercial loan underwriting and review.” font_container=”tag:p|font_size:15|text_align:left|color:%23000000″ google_fonts=”font_family:Raleway%3A100%2C200%2C300%2Cregular%2C500%2C600%2C700%2C800%2C900|font_style:700%20bold%20regular%3A700%3Anormal” css_animation=”bounceInUp”][/vc_column][vc_column width=”1/2″][vc_column_text][yikes-mailchimp form=”10″ submit=”Request Demo”][/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][/vc_column][/vc_row]

Leave a Reply

Your email address will not be published. Required fields are marked *