Public Banking: A Big Boost for Small Business
Nearly 1.5 million people are employed by small businesses in Massachusetts—almost half of all workers in the Commonwealth. But small businesses are not just economically important. A diversity of service, manufacturing, construction, design, food and agricultural businesses, not to mention non-profits, educational and arts organizations, creates a stronger community. Local small businesses are more likely to support local institutions, from concerts at the town bandstand or local park to Little League teams. A thriving Main Street creates a sense of place and civic pride, and everyone benefits from access to services and jobs.
The COVID-19 pandemic has been a disaster for many small businesses. Those unable to pivot to a low-customer-contact model or allow employees to work from home have been especially hard hit. Federal relief programs have channeled aid through private banks which service their clients first, leaving “unbanked” or “underbanked” businesses out in the cold. We are now looking at a wave of bankruptcies and closures, falling hardest on low-income and/or minority communities, including an estimated 46% of Black-owned enterprises.
In the wake of the pandemic, S.665/H.1223, “An Act to Establish a Massachusetts Public Bank,” can help small enterprises re-establish themselves and thrive.
The proposed public bank will make loans to these businesses. Where appropriate, it can do so in participation with Massachusetts banks and credit unions, building on their knowledge of local economic needs. The bank can also provide program related loans to community development financial institutions or other non-profits, another way to build entrepreneurship, help new businesses open, or even convert existing businesses to employee-ownership.
The proposed bank’s focus on lending to rural business concerns, underserved neighborhoods, and smaller business entities means that the advantages of a public bank for small business are shared across Massachusetts, in both small towns and in overlooked cities and urban communities.
Interested in learning more? We welcome the chance to speak to small business owners, downtown business associations, chambers of commerce, or other leadership organizations. Contact us with questions or to start a conversation about how a Massachusetts public bank can help our small businesses succeed.
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Download and share our fact sheet on building wealth in minority communities through small business and job creation. Learn more about how a Massachusetts public bank can help support equitable economic development in underserved neighborhoods.
Public Banking: A Big Boost for Small Business
Nearly 1.5 million people—almost half of all workers—are employed by small businesses in Massachusetts. But small businesses are not just economically important. A diversity of service, manufacturing, construction, design, and agricultural businesses, not to mention non-profits and arts organizations, creates a stronger community. Local small businesses are more likely to support local institutions, from concerts at the town bandstand or local park to Little League teams. A thriving Main Street creates a sense of place and civic pride, and everyone benefits from access to services and jobs.
The Covid-19 pandemic has been a disaster for many small businesses. Those unable to pivot to a low-customer-contact model or allow employees to work from home have been especially hard hit. Federal relief programs have channeled aid through private banks which service their clients first, leaving “unbanked” or “underbanked” businesses out in the cold. We are now looking at a wave of bankruptcies and closures, falling hardest on low-income and/or minority communities, including an estimated 46% of Black-owned enterprises.
In the wake of the pandemic, S.665/H.1223, “An Act to Establish a Massachusetts Public Bank,” can help small enterprises re-establish themselves and thrive.
The proposed public bank will make loans to these businesses. Where appropriate, it can do so in participation with Massachusetts banks and credit unions, building on their knowledge of local economic needs. The bank can also provide program related loans to community development financial institutions or other non-profits, another way to build entrepreneurship, help new businesses open, or even convert existing businesses to employee-ownership.
The proposed bank’s focus on lending to rural business concerns, underserved neighborhoods, and smaller business entities means that the advantages of a public bank for small business are shared across Massachusetts, in both small towns and in overlooked cities and urban communities.
Interested in learning more? We welcome the chance to speak to small business owners, downtown business associations, chambers of commerce, or other leadership organizations. Contact us with questions or to start a conversation about how a Massachusetts public bank can help our small businesses succeed.