Heartbeat of America

Community banks, local entrepreneurs and local businesses are economic and social drivers in communities across the United States.

To us, they are indie movie theaters, grocery stores, ice cream shops and local haunts but economically, they are the foundation of this country. They are job creators, value creators and major exporters. Collectively, small businesses represent 99.9% of all American businesses, produce 45% of America’s GDP and employ almost half of the population.

Community banks are an essential partner in creating this economic prosperity, holding 42% of the banking industry’s small business loans while only accounting for approximately 13% of banking industry assets. Together, they establish a mutual relationship of growth that results in huge social and economic benefits for the communities they serve.

Shining a light on the people and enterprises that mold our communities while promoting national prosperity is the motivation behind Nasdaq’s Heartbeat of America campaign. This campaign aims to explore and celebrate the stories of American businesses, organizations and individuals who improve their communities every single day.

Together, small and local businesses are a powerhouse of industry. Research done by The Small Business Administration’s (SBA) office of advocacy found that from 2000 to 2019, small businesses created 10.5 million net new jobs, almost double that of large businesses.

In addition, small business exports are felt across the world, accounting for 32% of America’s known export value, a whopping $473 billion.

According to the U.S. Chamber of Commerce, small businesses need an environment that fosters growth for our national economy to thrive. When small businesses are doing well, national spending is increased and the economy is driven upward.

But small businesses need sizeable investment to get themselves off the ground. Many local businesses start with just one entrepreneur and an idea to fill a need in their community. Banks and credit unions are often a necessary source of capital, and a welcome partner for those just starting out or looking to expand.

Community Banks are financial institutions geared specifically toward helping small businesses and local entrepreneurs find the capital to start, expand or rebrand their businesses. Often, they provide a more favorable loan for a local business owner or entrepreneur because their business model involves building strong relationships in their community.

Community Banks are keenly invested in the success of these entrepreneurs because local business success translates to tangible community uplift, with more opportunities for the community bank to reinvest local dollars toward community projects. As local businesses succeed, municipalities receive larger tax revenue which can be reinvested into upgraded infrastructure, maintaining parks and playgrounds and increasing the overall quality of life for residents.

The cyclical economic uplift between community banks and their small business clients is the driver of a resilient community identity.

The local bar is a great place to gather after work, restaurants are spaces to celebrate events, the coffee shop is a hybrid office space and a prime spot for a first date.

In one of our featured pieces above, we heard how Dime Community Bank’s financial partnerships along Long Island, New York, have translated to both community uplift and a resilient community identity. Through Dime we met Frank Bono, owner of Primi Italian Steakhouse.

With Dime’s help, Bono is now expanding a family legacy of Italian cuisine, just a town away from the restaurant that his grandmother owned when he was a child.

The impacts of community bank and small business success, on a micro and macro scale, both economically and socially, is why Nasdaq started our Heartbeat of America Campaign, spotlighting these businesses, entrepreneurs and the investors who enable their growth.

In the coming months, Nasdaq will continue to share stories of local success and entrepreneurship, stories that make up the heartbeat of America.