First Security Positioned to Help Small Businesses

Being a small business owner has always come with its own unique set of challenges, but several factors have made it particularly difficult in recent times. These include economic uncertainty, access to capital, and keeping up with technological advancements.

Though many of these factors are the result of national and global influences, there are many ways staff at First Security can assist a small business owner through these challenges.

Chief Lending Officer Jason Walters said, “First Security has a very knowledgeable small business banking team. We’ll go the extra mile to find all the possible ways to support your small business dreams.”

If you'd like to be put in touch with a member of our commercial lending team regarding special financing programs or any of the other topics mentioned in this article, please complete the below form.**

**Please do not include any personal identifying or confidential information such as account numbers or social security numbers. 

Economic Uncertainty

The Federal Reserve has raised interest rates dramatically over the last year in attempts to curb inflation. The rapid rise in interest rates has caused significant stress on business profits. As rates rise, costs of inventory, staff wages, and operation expenses have also increased. This has lead to very thin profit margins for many businesses. 

Inflation remains high despite the rate increase, and that has affected nearly everyone. The average household has less cash to spend, and as a result, some businesses are seeing drops in their patronage.

In short, consumers are spending less while small business costs are rising. 

"This is a double-edged sword for small business owners that often leads to diminished profitability," said Jason. "Owning a small business is always a challenge. However, navigating a profitable business in today's economic environment has become exceedingly difficult."

First Security staff have worked diligently to develop the right expertise, offer the right products, and form the appropriate strategic partnerships to provide our small business customers the financial support they need. 

"Whether that's providing capital to help the business with cashflow during tough times or to purchase bulk inventory at a lower cost to improve margins, we are here to support you," said Jason.

Access to Capital

A testament to First Security's support of main street lending is the fact that the bank is one of only a few banks registered through the state of Iowa for the Small Business Collateral Support Program (SSBCI).

According to the Iowa Economic Development Authority (IEDA), the SSBCI program is intended to help eligible small businesses that are 51% or more owned by women, minorities, veterans, individuals with disabilities, and long-term rural residents, and also includes small businesses that enhance arts and culture in Iowa.

“For many businesses, access to an adequate amount of working capital is very hard to obtain,” said Jason. “This loan program helps qualified small businesses gain access to capital they may otherwise not be able to obtain to sustain or grow their businesses, and, again, First Security is one of only a few banks in the area that can help applicants with this program.”

The SSBCI program is one of several innovative ways the bank aims to help customers prosper.

“Our team will find the right balance between conventional financing and specialized loan programs when enhanced access to capital is required,” said Jason. “I invite you to visit with us to learn more about how we can leverage these programs to achieve your small business dreams.”

Technological Advancements

In addition to our lending programs, First Security’s Retail Team, which is made up of Retail Advisors (AKA Personal Bankers), Tellers, and Video Bankers have all the necessary technology to support remote banking for small business owners.

The bank provides basic tools like online banking, mobile deposit, Point-of-Sale systems, and remote deposit as well as more unique technology, like Video Banking. Video Banking is located in 8 First Security locations, and to sum it up, bankers use video chat technology to assist customers with nearly every type of transaction that could be done at a drive-up window or bank lobby. This tool allows First Security's drive-up to be open longer than any other bank in the area, even in small communities.

“All-in-all, we are passionate about rural communities. They are special and something to be protected," said Jason. "Small businesses bring vibrancy to our area, and we want to do all we can to bring them here and help them thrive."