Community Bank Small Business Lending Strategy

Community banks have over half of the loans to small business according to FDIC data, but only about one-seventh of the business loans under $100,000.  In fact, community banks, banks under $10B in assets, had more loans under $100k to small businesses in 2006 than in 2016.

 Why?  Because small business loans under $100k average only $20k.  Underwriting and delivery costs are $1,000 to $2,000 a year according to the Harvard Business School’s study, making these loans unprofitable.

Digital lending, however, provides the technology to make loans to this segment for under $200 a year, and with a great customer experience in three minutes on a smart device.  For more information, download our Whitepaper, Digital Drives Segmented Small Business Lending Strategy.