Clearwater, FL (PressExposure) May 28, 2009 -- There is a widespread belief that national and regional banks are not approving loans for small businesses in the current credit crunch. Although some businesses are still getting loans from these banks, the large banks have tighter borrowing criteria for small businesses. Hence, many entrepreneurs are now turning to community banks for funding.
First National Bank of Pasco, having more than adequate funds in this credit crunch period, continues to grow steadily increasing in assets by another 10 million dollars in the first quarter of 2009. The community bank understands its community and the businesses they serve. Their Chief Loan Officer has vast experience in SBA loans and says FNBPasco lends on cash flow, not collateral.
While discussing advantages and disadvantages of borrowing for small businesses from large national or regional banks versus community banks at MSNBC, Bryan Stevens, a principal at Business Borrowers Alliance, said that when it comes to small business loans community banks can be more lenient in their lending criteria because they know their local businesses better.
"Sound financial management and a real understanding of its community's needs are the fundamentals of good banking," commented A.P. Gibbs, the Founding Father of FNBPasco and Chairman of its Board of Directors.