Paducah Bank’s Positive Impact on the Community through Small Business Lending

Abstract

Small business lending by community banks has fallen in recent years due to community banks being acquired by larger counterparts (Jagtiani and Maingi, 2018). Regulatory requirements have incentivized larger banks to acquire smaller banks (Bonilla et al., 2018). To compete against larger competitors, community banks are taking a relationship based approach to lending (Bonilla et al., 2018). These institutions are uniquely suited for small business loans in that they know their community and their client base. The purpose of this paper is to examine a small community bank and assess their small business lending.