A few months back Small Business Trends posted on the death (or at least decline) of small community banks. It stated that between 1992 and 2008 the number of U.S. commercial banks with less than $100 million in assets drastically dropped from more than 8,000 to less than 3,000 banks of that size.

For small business owners this generally means a tougher time getting loans, as the development of personal relationships with local lending officers in small community banks allows them a better shot at not only receiving funding, but receiving it under favorable terms.

The post went on to say that this decline will undoubtedly continue and small and midsize banks may disappear sooner than we think. Kind of gloomy, wouldn’t you say?

Well, here’s a little glimmer of hope that I came across the other day. A new bank recently opened up in western Michigan called Grand River Bank. What’s so great about this bank? It was founded completely on the idea of serving the needs of emerging and existing small businesses.

It’s a little hard to imagine a bank opening up in this economy, let alone in Michigan, but I find it incredibly encouraging to see a small local bank that is not only opening its doors rather than closing them, but is also opening its doors specifically to help struggling and successful small business owners.

Only time will tell whether this model will gain momentum and spread, but if it at least helps boost the small business economy in western Michigan, then I give it two thumbs up.

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