Banks are key to accessing capital and are vital to economic growth

Economic growth and prosperity are intertwined with population, workforce, policy and numerous other local and regional characteristics and variables. In every scenario, access to capital is at the core of economic development.

Banks are the key to accessing capital and are vital to economic growth.  They increase the amount of money in circulation by creating credit, which impacts economic development, raises overall demand and leads to more production. From promoting capital formation and investment in new enterprise to promoting trade and industry, banks fuel the churn of the economic engine.

Nevada is served by banks that, while small in number, are diverse in specialties and deep with capacity. Banks mitigate concentration risk by partnering with a healthy blend of industries present in the local community. As for capacity, take the pandemic’s Paycheck Protection Program (PPP) for an example. Nevada banks delivered the 12^th best performance among all states when it came to connecting the highest percentage of eligible businesses to a PPP loan.

Beyond the economy, Nevada banks fuel their communities. Creating partnerships one relationship at a time, bankers work with their customers to understand financial needs and goals, create plans to achieve those goals and anticipate future needs. Businesses large and small count on Nevada banks for numerous, secure and reliable finance options.

• Traditional lending forms the foundation of loan programs offered by Nevada banks. These programs include loan products and lines of credit that aid businesses in expanding their operations, acquiring new equipment, vehicles or land. Banks also offer financial products and services that allow businesses to conduct financial transactions safely and securely by facilitating the acceptance of payments, paying bills, improved cash flow and an ability to work with international customers and foreign currencies
• When a business isn’t bank-ready, or has financial needs that can’t be best served by a bank product alone, banks turn to partnerships. Banks often partner with a wide network of government and non-bank entities to create even broader access to capital for a wider range of client scenarios seen among Nevada businesses.
• Nevada’s banks are instrumental in federal lending programs such as SBA lending, offering 7 (a) and 504 loans, and partners with the Small Business Administration to support additional loan, grant and education programs for businesses.
• Banks also partner with state programs, including those through the Governor’s Office of Economic Development (GOED), like the state collateral support program that helps borrowers when there is a collateral shortfall. Other programs help with microenterprise initiatives.
• Community Development Financial Institutions (CDFI) are financial institutions with a specific focus on promoting community development. CDFI’s can bridge gaps and help underserved or distressed markets. Nevada banks partner by providing loans, purchasing loans, making qualified investments into CDFIs and more.

The industry of banking represents an opportunity for industry growth too. Nevada ranks 20^th for de novo (a newly chartered bank under a period of increased regulatory oversight) activity since 2000, with its newest bank successfully exiting de novo status with a banner year. Nevada allows for a variety of charter types, including a rare industrial lending charter and a unique environment for trust companies and trust banks.

Nevada doesn’t leave the banking talent pipeline to chance and is preparing for and fostering industry growth. The Nevada Bankers Association partners with University of Nevada, Las Vegas and College of Southern Nevada to provide programs for both finance and non-finance students to increase their banking acumen by taking credit-courses in banking.

Nevada Bankers Association is the united voice of Nevada’s diverse banking industry. Our members are dedicated to providing the best financial products, services and resources to drive and support economic growth, job creation and prosperity throughout Nevada.