Traditional lenders for small businesses typically include banks, credit unions, and other financial institutions that provide loans and financing to businesses. For underrepresented entrepreneurs, accessing these sources of funding can sometimes be more challenging due to various barriers such as credit history, collateral requirements, and biases in the lending process. Here’s some information that may be helpful:

1. Types of Traditional Lenders:
   • Banks: Commercial banks are the most common traditional lenders. They offer a range of business loans, lines of credit, and other financial services. Larger banks may have more stringent requirements, while community banks might offer more personalized service and be more flexible.
   • Credit Unions: These are member-owned financial cooperatives that often offer competitive rates on business loans. Credit unions may be more willing to work with underrepresented entrepreneurs due to their community-focused nature.
   • Small Business Administration (SBA) Lenders: Banks and credit unions can become SBA lenders, which allows them to offer SBA-guaranteed loans to small businesses. These loans reduce the risk for lenders, making it easier for underrepresented entrepreneurs to qualify.
2. Loan Products:
   • Term Loans: Traditional loans with a fixed amount, repayment term, and interest rate.
   • Lines of Credit: Flexible financing that allows businesses to borrow up to a predetermined credit limit.
   • SBA Loans: Government-backed loans that provide more favorable terms for small businesses.
3. Challenges for Underrepresented Entrepreneurs:
   • Credit History: Lack of established credit history can be a barrier, as traditional lenders often rely heavily on credit scores to assess risk.
   • Collateral Requirements: Some loans may require significant collateral, which can be challenging for businesses without substantial assets.
   • Bias and Discrimination: There have been concerns about biases in lending practices, which may disproportionately affect underrepresented entrepreneurs, including women, minorities, and immigrants.
4. Strategies to Improve Access:
   • Build Credit: Establish and maintain a good credit history through responsible borrowing and repayment.
   • Business Plan: Develop a solid business plan that demonstrates the viability and potential for growth of your business.
   • Alternative Lenders: Consider alternative lenders such as Community Development Financial Institutions (CDFIs) or online lenders that may have different criteria and a mission to support underserved communities.
   • Networking: Build relationships with bankers and lenders who understand your business and market.

​Navigating the traditional lending landscape can be challenging for underrepresented entrepreneurs, but with preparation, persistence, and leveraging available resources, it is possible to secure financing to start or grow a small business.

​Selecting the right bank as an entrepreneur is crucial for your business's financial health and growth. Here are key factors to consider when choosing a bank:

1. **Products and Services**: Assess whether the bank offers the specific products and services your business needs, such as business checking and savings accounts, business loans, lines of credit, merchant services, cash management solutions, etc.

2. **Fees and Charges**: Compare the fee structures of different banks, including monthly maintenance fees, transaction fees, ATM fees, overdraft fees, and other charges. Look for transparent fee schedules that align with your business’s financial activities.

3. **Interest Rates**: If your business will maintain significant balances in savings accounts or use loans, compare interest rates offered by different banks. Pay attention to both savings account rates and loan rates (e.g., for business loans or lines of credit).

4. **Accessibility and Convenience**: Consider the bank’s branch locations, ATM network, online banking capabilities, mobile app features, and customer service hours. Accessibility is important for day-to-day banking needs and convenience.

5. **Technology and Digital Tools**: Evaluate the bank’s online banking platform, mobile banking app, and digital tools. Features such as mobile check deposit, bill pay services, real-time account alerts, and integration with accounting software can streamline your financial management.

6. **Customer Service and Support**: Assess the quality of customer service provided by the bank. Look for reviews or ask other business owners about their experiences with the bank’s responsiveness, problem resolution, and overall support.

7. **Financial Stability and Reputation**: Choose a bank with a solid reputation and financial stability. Check the bank’s credit ratings and consider its history of serving businesses similar to yours. A stable bank is more likely to weather economic fluctuations.

8. **Relationship and Partnership Approach**: Determine if the bank takes a proactive approach to understanding your business and offering personalized advice and solutions. A bank that sees itself as a partner in your business’s success can provide valuable insights and support.

9. **Specialized Services or Industry Expertise**: Depending on your industry or specific needs (e.g., international transactions, healthcare financing), consider if the bank offers specialized services or has expertise in serving businesses similar to yours.

10. **Regulatory Compliance**: Ensure the bank complies with regulatory requirements and is insured by the Federal Deposit Insurance Corporation (FDIC) or another relevant insurance entity. This protects your deposits up to the insured limit.

11. **Community and Corporate Social Responsibility**: If community involvement or corporate social responsibility is important to your business, consider a bank that aligns with your values and supports local initiatives.

By carefully evaluating these factors, you can choose a bank that not only meets your immediate financial needs but also supports your business’s long-term growth and success.

Building a strong banking relationship as an entrepreneur can be highly beneficial for your business. Here are some effective strategies to foster a great relationship with your banker:

1. Open Communication: Regularly communicate with your banker, not just when you need something. Keep them updated on your business’s progress, challenges, and future plans. This helps them understand your business better.
   
2. Be Transparent: Provide accurate and transparent information about your business’s financial health, cash flow, and any challenges you may be facing. Transparency builds trust.
   
3. Understand Your Banker’s Role: Understand that your banker is there to help you navigate financial services and products that best suit your business needs. They can provide valuable advice and insights.
   
4. Meet in Person: Whenever possible, schedule face-to-face meetings with your banker. This personal interaction helps build rapport and allows for more detailed discussions.
   
5. Utilize Banking Services: Use a range of banking services offered by your bank, such as business accounts, credit cards, loans, and cash management solutions. Demonstrating loyalty can strengthen your relationship.
   
6. Stay Compliant and Responsible: Ensure that your business complies with all financial obligations, such as loan repayments and maintaining adequate cash reserves. Responsible financial management enhances your credibility.
   
7. Seek Advice and Guidance: Don’t hesitate to ask your banker for advice on financial matters relevant to your business. They can provide insights into market trends, financing options, and risk management strategies.
   
8. Provide Regular Updates: Keep your banker informed about any significant changes in your business, such as expansions, new projects, or changes in ownership. This proactive approach shows that you value their input.
   
9. Attend Bank Events: Attend seminars, workshops, or networking events hosted by your bank. These events provide opportunities to meet other professionals and deepen your relationship with your banker.
   
10. Express Appreciation: Acknowledge and appreciate your banker’s assistance and support. A simple thank-you note or gesture can go a long way in nurturing a positive relationship.
    
11. Be Patient and Understanding: Understand that bankers have regulations and procedures to follow. Patience and understanding during the process of obtaining financial services can strengthen your relationship.
    

Building a great banking relationship takes time and effort, but the benefits—such as access to better financial products, favorable terms on loans, and personalized advice—are well worth the investment in cultivating that relationship.

Oscar Lopez, Business Banking Officer
1111 Broadway, Suite 1650, Oakland, CA  94607
510.869.7022 | [email protected]

Philip Wong, Regional Manager
email: [email protected]

Vanita Tatum
VP Commercial Banker
https://amalgamatedbank.com/

Sue Odah | Sr Branch Manager
3300 Klose Way Suite A Richmond, CA 94806
O: 510-222-7603 Ext. 4953   | [email protected]

Lynell Bevels
AVP, Community Lending Manager 
CA/NV/AZ
M 510-295-8052

Charles Johnson, VP Senior Business Analyst

Vance Barnes, Senior Commercial Relationship VP
420 Montgomery St, San Francisco, California, 94163
ph: (866) 249-3302

Alma Cagalawan, Small Business Specialist / Assistant VP
Email:  [email protected]
Martinez | Hercules | El Cerrito
659 Main St. Martinez, CA 94553 
1530 Sycamore Ave. Hercules, CA 94547  
11450 San Pablo Ave. El Cerrito, CA 94530 

Jesy Hernandez, Banking Services Officer
4100 MacDonald Avenue | Richmond, CA 94805
Tel 510.262.7420
[email protected]

Deborah Willis
deborah.willis@fremontbank.com
Direct: (925) 634-6991
https://www.fremontbank.com/