California Bank & Trust Survey of Small Businesses in the State
Reveals an Increased Need for Capital
SAN DIEGO--(BUSINESS WIRE)--
About half (49 percent) of small business owners in California say a
relationship with their bank is a “very important” part of their
success. According to the results of a survey
of 1,222 small business respondents in California conducted byCalifornia
Bank & Trust (CB&T), one in two small business owners in the
Golden State depend on their bank for resources beyond capital. Small
business owners cited “access to capital” and “knowledge and advice”
among the top items they depend on from their banking relationship.
Meanwhile, 8 in 10 indicated their financial institution does not keep
them regularly or adequately informed of federal, state or local
programs that can help them grow and succeed.
Tory Nixon, California Bank & Trust Executive Vice President (Photo: Business Wire)
California Bank & Trust fielded a benchmark survey to gauge California’s
economic pulse from the viewpoint of the state’s small business owners
during the first half of 2012. The survey was conducted again in
September, 2012, to determine changes in sentiment as the year had
progressed. “We conducted a survey of small businesses in California to
help give us a better understanding of the challenges faced by a core
part of our business,” says Tory Nixon, California Bank & Trust
executive vice president,who manages small business lending for
the company. “We also wanted to assess their opinion of doing business
in the state. We wanted to know: what keeps them up at night? What we
are hearing is that small businesses are seeking advice, counsel and
expertise to help them navigate the challenges created by today’s
economic climate. This knowledge helps California Bank & Trust focus its
commitment to helping these businesses overcome their challenges so they
remain vital not only to the state, but to the economies of their
respective communities.”
While small business owners are seeking knowledge and advice, the
perception is that access to capital does remain scarce. The majority of
businesses responding to the survey also described their ability to get
capital since 2010 as “very difficult” while 30 percent described the
process as “somewhat difficult.” Approximately 41 percent of business
owner respondents who applied for capital over the past two years were
denied, and two thirds of those were not able to secure alternative
financing. When asked, some survey respondents mentioned the ability of
community banks to address the specific needs of small businesses in
their community as opposed to the larger national banks. “California
Bank & Trust helps to provide its customers with access to capital
whenever possible,” says Nixon. “We are closer to our customers which
enables us to have a better understanding of their businesses and get
them the resources they need to achieve their business goals and
objectives.”
State’s Economy Worsening in Small Business Owners’ View
The California Bank & Trust survey also revealed a cautious sentiment
among the state’s small business owners. Some 48 percent of respondents
described California’s economic climate to be “worsening,” compared to
22.6 percent seeing things as “improving” and 29.3 percent describing
the situation as “remaining stable.” But even against the backdrop of a
worsening economy for small business, nearly half of respondents also
cited a need for additional capital this year to expand their business.
More than 65.2 percent of all business owners seeking capital cited
“business expansion” as their primary reason for needing additional
cash. Meanwhile, 35.5 percent indicated a plan to “increase staffing” as
a reason for needing additional capital.
“We know that California’s economy remains sluggish and our state is not
alone in that sentiment,” says Tory Nixon. “However, we’re seeing that
businesses – especially small businesses – remain committed to creating
jobs and growing enterprise in California. Small business is still the
backbone of our state’s economy. ”
Through California Bank & Trust’s recently announced TEAM
initiative, the bank offers small businesses in California resources
to help get their businesses up and running and to keep them growing and
thriving. TEAM, which represents “Tools, Education, Access and
Mentoring,” strengthens California Bank & Trust’s longstanding
commitment to identify the economic needs of the communities served by
the bank and to focus on meeting the needs of businesses through
community-specific lending initiatives.
“With our network of highly experienced, professional bankers, and in
cooperation with community based and economic development organizations,
we can provide expert guidance to business owners in California,” says
Nixon. “Our TEAM Initiative’s website
features videos, information and useful tools to help small business
owners. This survey makes it clear that businesses in California
continue to overcome challenges to succeed. It remains California Bank &
Trust’s mission to provide our customers the help they need to grow,
thrive and become a valuable part of their communities.”
About California Bank & Trust
California Bank & Trust, a subsidiary of Zions Bancorporation (NASDAQ:
ZION), is one of the largest banks headquartered in California with over
$10 billion in assets and more than 100 branches statewide. CB&T
provides a full array of financial solutions for businesses and
individuals, including commercial and small business lending, cash
management, international banking and wealth management. The
professional bankers at CB&T are backed by major resources, yet maintain
local-decision making authority and regional market and industry
expertise. They are committed to providing clients with valuable
business and economic insights and to connecting them with the
beneficial business relationships they need to succeed. CB&T is
consistently rated by the FDIC as “outstanding” for its Community
Reinvestment Act activities. To learn more, visit www.calbanktrust.com.
Connect with California Bank & Trust on Facebook,
Twitter
and LinkedIn.
About
the Survey
California Bank & Trust surveyed 1,222 respondents in California online
in May, 2012 and again in September, 2012. The small businesses were
defined for the survey as having $10 million or less in annual revenues.
Media Please Note:
For further detail about California Bank & Trust’s survey,
to schedule an interview with Tory Nixon, or to request high-resolution photography
or video, please contact Tarah Beaven at Landis Communications,
Inc.: (415-359-2306; tarah@landispr.com)
or Rob Farmer at Landis Communications, Inc. (415-359-2316; rob@landispr.com).
Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20121129005352/en/
Landis Communications, Inc.
Tarah Beaven, 415-359-2306
tarah@landispr.com
www.landispr.com
Rob
Farmer, 415-359-2316
rob@landispr.com
www.landispr.com
Source: California Bank & Trust