Reinvesting in the Community
The idea of “sustainability” is linked to a lot of local activities these days—whether it’s reusing or recycling products, sampling culinary delights from a local bakery, or choosing to buy American-made products to support our national economy. There are plenty of reasons why eating, dining, and banking locally makes good economic sense.
If you’ve ever wondered if it matters where you deposit your hard-earned money, let me assure you it does. Not only does banking locally support small businesses (community banks fund more than 60% of small business loans and more than 80% of ag loans), but as locally owned and operated businesses themselves, they are part of the economic engines that create 62 percent of new jobs annually.
Community banks like Plumas Bank take in deposits and distribute loans that feed into a self-sustaining micro-economy and keep funds right here in northeastern California and northern Nevada. It is all part of a symbiotic relationship that community banks have with their communities. And the proceeds from those businesses employ residents, fund municipalities, and continue the cycle of locally based economic growth.
And if you need more proof just consider the community bank response to the coronavirus pandemic.
• Community banks, as economic first responders, made 60 percent of total Paycheck Protection Program loans to small businesses and provided 72 percent of PPP loans to minority business owners that reported such data.
• Community banks outpace large banks in their average number of banks operating in both rural and urban markets by a 3:1 ratio.
• Community banks are preferred small business lenders, with an 81 percent net satisfaction score compared to 68 percent for large banks and just 43 percent for online lenders.
• Community banks have consistently demonstrated their safety and soundness with higher capital ratios and better loan quality than the largest institutions.
• Community banks operate in areas abandoned by others—serving as the only physical banking presence in nearly one in three U.S. counties.
But it is not just about stats. When clients contact Plumas Bank, they are greeted by a talented team member who is attuned to their needs and empowered to act on their behalf.
And when our team members log volunteer hours in support of the non-profit organizations they are passionate about or when Plumas Bank contributes to causes that rebuild communities such as the Dixie Fire Fund, we are working toward our goal to ensure economic prosperity for the communities we call home.