In today’s economic environment, small businesses are migrating to the smaller community banks where they receive greater financial flexibility in meeting their financial needs.

It’s more advantageous for a small business to look to local banks for financing because local institutions are sensitive to the surrounding economic environment, provide personal service through one on one contact and, if necessary, are able to provide borrowers with specialized business resources to help them succeed.

Local banks also understand that providing funding to smaller businesses helps create jobs, which in turn helps stimulate the local economy. Often, what a small business owner needs is more than just a loan. Technical assistance and access to resources is an additional value that a small community-based bank can provide. Local banks know the community, know the businesses and are able to dedicate the time required to connect a small business to available resources.

For example, a small business owner recently approached one of our loan officers, Josephina Silva, to finance the purchase of a small restaurant. At the time, the business owner had big ideas and several years of experience, but no business plan. Silva spent some time with her, and introduced her to the various resources at her disposal, including referring her to the Small Business Development Center at UMass Boston to help her develop her business plan. She also put her in touch with ACCION USA, to discuss its microloan program with Boston Beer Co.

Not only was this business owner able to take advantage of the tremendous resources our community bank provided, in addition to a small business loan we closed for her, she was also able to get a grant from her local town for façade costs. Larger banks are less likely to invest time on a small loan, never mind dedicate additional time to connect a small business owner to resources available in the local community.

This is just one example of how working with local institutions provides more than just funding. As Richard J. Gavegnano, CEO and Chairman of East Boston Savings Bank, noted: “It’s all about establishing a partnership and building a lasting relationship that benefit the bank, business and most of all the community.”

Lisa M. Kornachuk is vice president of marketing at East Boston Savings Bank, Peabody.