Community Banks Keep Minority Small Businesses Strong—Policymakers Must Step Up

With both the Trump administration and Congress working on financial priorities, we have a prime opportunity to ensure community banks can thrive. These local institutions face mounting pressure as larger banks dominate the market. Without access to diverse funding sources, many community banks struggle to maintain and expand their service lines, which directly limits the financial options available to the small businesses they serve.

Community banks are particularly important for minority- and women-owned businesses, as well as the businesses in historically underserved neighborhoods of Las Vegas. These banks understand the distinct needs and barriers faced by these communities. They are known to take the time to build personal relationships with their clients, offering tailored solutions along with a shared stake in the success of the areas they operate in.

However, local deposits alone simply aren’t enough to keep these banks strong. Community banks need the flexibility to partner with third-party funders and innovative digital platforms like that offered by Raisin and other that expand their funding channels to stay competitive. We also can’t overlook the broader role community banks play in advancing financial equity. These banks often take root in places that larger institutions disregard, and they help minority entrepreneurs secure the capital they need to achieve their goals, which uplifts not just individual businesses, but entire communities. When community banks thrive, small businesses thrive—and when small businesses thrive, so do local economies.

—Andres Estrada, a Las Vegas minority-owned business advocate and former chairmember for the Nevada Latin Chamber of Commerce