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Sponsored by: Rockland Trust
January 30, 2025

Embracing Uncertainty: Small Businesses & the Future of Banking

Robert Paulsen

With over forty years of experience in financial services, you'd think that as a Commercial Banker, I'd be able to say that I have seen it all. While I have certainly seen a lot, there is an undeniable truth to the mantra "never say never" when it comes to banking.

Many of those who are reading this may not remember some of the economic hurdles of the past few decades. From the burst of the dot-com bubble in 2000 to the challenges of COVID-19, I have weathered the storm of several unprecedented economic times. One lesson I have learned is that while we can endlessly analyze trends in the market, two quarters of positive GDP growth, unfortunately, does not translate into being out of the woods. We live in a moment of 'unknown' currently with interest rate fluctuations, production delays, staffing shortages, global conflicts, and the ongoing vacant commercial office space concerns.

However, even in times of unpredictability, there is one constant: the resilience of small businesses and their importance to our economy. Even today, 99.9% of businesses in the United States are small businesses − those with 500 or fewer employees. According to Pew Research Center, these businesses generate over $16.2 trillion in revenue annually. This is no small feat, given that most of these businesses have fewer than four employees.

Meanwhile, in 2023, Rockland Trust had an average business loan of $1.3 million. This may come as a surprise to some, given that it is often the larger financing projects that are highlighted in the local news: $20 million for an affordable housing development, $12 million for the refinance of a corporate building, and so on.

These projects are equally important, and we focus on helping businesses of all sizes find their own path to success. This is a core value of the Rockland Trust, which was founded by a group of business owners who found they couldn't get the financing they needed from the larger city banks. Now, over 120 years later − this mindset still holds true. If financial institutions forget these roots, the impact will be disastrous. 

Rockland Trust has six branches in Worcester County, with the latest opening in Marlborough just this January. This is in contrast to other financial institutions that are exploring a more prominent digital presence versus brick and mortar. It’s our belief that business owners are better poised for success when they have access to physical banking locations. The opportunity to share a coffee with your banker is what makes the difference between a transaction vs. a relationship.

All of this is to say that while the current landscape is confusing and unpredictable, community banks like Rockland Trust will continue to focus on in-person service to our small business partners. Our goal is to support our neighbors in building a resilient community where we can all work and live. We are here to provide the support and resources so that businesses can remain successful even amid uncertainty. I am confident that if we continue to grow together, we will be able to navigate any of the challenges that may lie ahead.

 

Rockland Trust is a full service commercial bank headquartered in Massachusetts.
Learn more at RocklandTrust.com. Equal Housing Lender. Member FDIC.