Navigating the banking landscape is crucial for small business owners in New England. With diverse options available, understanding the bank that meets the unique needs of small businesses is essential for financial growth. Learn more about the top banks in the region, based on the services they offer that can be profitable for small businesses.
How to Choose a Small Business Banking Partner
Small business owners should consider the following factors to determine the best bank for their needs.
Access to Capital
Access to a range of financial products and services, such as loans and lines of credit, is crucial for small businesses to grow. A bank that offers flexible credit options can significantly ease cash flow management.
Fees and Charges
Understanding the various fees associated with business banking, such as maintenance, transaction and service fees, can influence the business’s profitability. It’s essential to choose a bank with transparent and reasonable pricing.
Customer Service
Dedicated customer support and personalized assistance offer a significant advantage to small business owners, especially during critical times.
Online and Mobile Banking Features
As businesses adopt digital solutions, online banking, mobile access, integration with payment solutions and similar features have become essential for saving time and resources.
Secure Operations
It’s essential to partner with a bank that can keep your professional and personal information safe. To open a business bank account, you will need to provide your chosen bank with your business's formation documents, your Employer Identification Number from the IRS and your personal identification.
Certifications and Program Participation
Small businesses benefit from choosing banks with fixed-rate financing for major fixed assets through the SBA 504 program. These loans are available through Certified Development Companies.
Community Reinvestment Act (CRA) ratings are another indicator of a reliable bank, assessing how well it meets its community’s needs. An "Outstanding" rating is the highest possible and indicates a strong commitment to community development.
Top Banks for Small Businesses in New England
Here are five of the top banks for small businesses in New England, each with unique strengths and offers.
1. Machias Savings Bank — Best Overall for Startups
Machias Savings Bank has a long history of supporting communities located in Maine since 1869. It focuses on improving the region, prioritizing financial decisions that support financial literacy and local commercial growth. This community-focused approach, combined with its customizable services for new businesses, makes Machias Savings Bank an ideal choice for startups.
Key Features:
- Strong focus on community development and support
- Named one of the Best Banks to Work for in the Nation by American Banker Magazine
- Awarded “Outstanding” by the FDIC’s Community Reinvestment Act (CRA)
2. Eastern Bank — Best for Community Involvement
Established in Boston in 1818, Eastern Bank is a reliable partner for small businesses. As the oldest and largest mutual bank in the United States, Eastern Bank has since converted to a publicly traded company. The bank has donated over $240 million to local charities since 1994, demonstrating its community-oriented approach.
Key Features:
- A wide range of financing options for businesses of all sizes
- Recognized for strong customer service
- Extensive history of charitable giving and community support
3. TD Bank — Best for Digital Banking
TD Bank is known for convenience and an extensive branch network, serving over 10 million customers from Maine to Florida. As one of the largest banks in the U.S., it offers a wide array of services for small businesses. TD Bank is also a leader in digital innovation, with a forward-focused approach to banking that includes an enhanced mobile banking app and a commitment to building a more inclusive and sustainable future.
Key Features:
- Highly rated mobile banking app and wide accessibility
- Strong commitment to sustainability and diversity
- Extensive network of branches and ATMs
4. Webster Bank — Best for Established Businesses
Founded in 1935, Webster Bank is a leading commercial bank. It offers significant loan sizes and personalized financial advice to local small businesses. With a footprint that spans the Northeast U.S., Webster Bank is well-equipped to support both new and established businesses. It has also received an Outstanding CRA rating for its commitment to the community.
Key Features:
- Offers significant loan sizes ideal for expanding businesses
- Provides personalized financial advice and a variety of lending solutions
- Outstanding CRA rating
5. Rockland Trust — Best for Relationship Banking
Recognized as a top lender in Massachusetts, Rockland Trust has been committed to supporting local communities since 1907. As a full-service community bank, it emphasizes building strong, long-term customer relationships. Rockland Trust offers competitive interest rates and fixed-rate financing through the SBA 504 program, making it an excellent choice for businesses seeking a close partnership.
Key Features:
- Competitive interest rates and SBA 504 program financing
- Strong emphasis on building customer relationships
- Experience serving local communities since 1907
Frequently Asked Questions
Here are answers to some frequently asked questions about choosing a bank for small businesses.
What documents do you need to open a business bank account?
Generally, you will need your business's formation documents, your Employer Identification Number and your personal identification. It's beneficial to check with the bank beforehand to ensure you have all the necessary paperwork.
Why are online and mobile banking features important for a small business?
Online and mobile banking features offer convenience and efficiency, allowing business owners to manage their finances at any time. This includes paying bills, transferring funds, depositing checks and monitoring account activity.
What is the SBA 504 program?
The SBA 504 loan program provides long-term, fixed-rate financing for major fixed assets that promote business growth and job creation.
What is a Community Reinvestment Act rating?
The CRA rating assesses how well a bank meets the credit needs of its entire community, including low- and moderate-income neighborhoods.
Choosing The Best Bank for Your Small Business
Partnering with the best bank is crucial for the prosperity of small businesses in New England. By considering factors such as access to financing, fees and services, and company reputation, business owners can find solutions for their specific needs.
