Published: December 2018
At First National Bank, we believe that when people support their communities by banking, shopping, and giving locally, everyone benefits. A community is made up of interconnected elements such as the population’s education and financial literacy, availability of affordable housing, access to jobs, and the general exchange of goods and services. When people bank, shop, and give locally, they are supporting the health of each of these elements and the overall success of their community. However, it could be argued that at the core of every successful community is the presence of local businesses of all sizes and types. Local businesses feed a cycle of community success that makes good things happen for the entire community.
It Begins With Our Customers
When our customers trust us to serve their financial needs, they enable us to give out loans that make things happen in a community that may not otherwise happen. When a loan is given to individuals, it enables them to realize their goals and dreams so they can live prosperous lives. When a loan is given to a local business, they have the ability to start, grow, and thrive. Both of these scenarios feed the cycle of community success that impacts every facet of a community.
Local Businesses Support Communities
When a community is home to local businesses of all sizes and types that offer a variety of goods and services, the whole community benefits. The citizens are able to purchase the items they need and want locally which simultaneously supports the businesses and keeps their hard-earned money within their community. Local businesses may then use their profits to continue expanding their businesses or they may choose to reinvest a portion back into the community. Additionally, the increase in state tax dollars collected helps support local projects and services.
Jobs Are Created
An increase in local businesses results in an increase in the availability of local jobs. More local jobs means citizens won’t have to look outside the community to obtain employment that fits their skillset. Time spent commuting to and from work is reduced, positively impacting physical and mental health. State income tax dollars remain within the community to support public services. Ultimately, citizens remain within that community because it supports all of their needs.
When a community contains a variety of local business, people are attracted to it and want to be a part of it. Housing developments tend to surround these business hubs, creating more housing options for citizens. The jobs that are created by these businesses help individuals qualify for mortgage loans, which increase homeownership rates across the community. Higher homeownership rates are a key factor in helping communities thrive because the pride of homeownership contributes to ongoing neighborhood upkeep, which helps maintain or increase home values. Additionally, when a local business is successful, they are able to reinvest back into the community that supports them. They may choose to do that in the form or philanthropy or by volunteering to support an element of successful communities that they are passionate about.
Whether it is the business owner, the employee, or the an individual positively impacted by philanthropy, the revenue that the local businesses generate enables people to live prosperous lives. These people are in a better position to buy a home, build equity, and start creating wealth that can be passed down to the next generation. They are better able to afford the goods and services they need, the extras that make life enjoyable, and still have enough left over to save for the future.
First National Bank is committed to feeding the cycle of community success by providing loans to aspiring entrepreneurs and by reinvesting in organizations working to help local businesses start, grow, and thrive. Click here to learn more.
Learn about the purchasing preferences and tendencies of Americans, including valuable insights about support for local businesses, in the First National Bank 2018 ‘Shop, Buy, Give’ Survey.