Independent Banker - April 2021 - 59

impacted quite severely. "
Geography will also play a role in
recovery, including the industries the
area relies on whether states or local
governments have mandates limiting
business activity.
In Idaho Falls, Idaho, an influx of
telecommuting homebuyers from
California, Oregon and Washington
has invigorated the economy, creating
a boom in both real estate and
construction lending, according to
Jeff Newgard, president and CEO of
$575 million-asset Bank of Idaho.
" We joke around here that we see
more California plates than Idaho
plates, " he says.
Demand for building supplies is so
great that some project bids are only
good for one week. Even hotels and
restaurants have done well, surprising
Newgard, since vacationers were
drawn to Yellowstone National Park
and Idaho's wide open spaces.
" We have a customer with cabins
near Yellowstone [that they] initially
designed and targeted to the Chinese
tourism industry ... but they just
pivoted. They were able to do well
on the domestic tourism coming in, "
Newgard says.
Small businesses in Idaho have
done particularly well. Nationally,
small business revenue decreased
by 33.1% between January 2020
and February 2021, according to
Opportunity Insights, but Idaho
businesses maintained revenue,
increasing by 0.1%.
That's translated into strong small
business loan growth for Bank of
Idaho. Small business lending grew
34% in 2019 and 24% in 2020-
without counting PPP lending. Credit
quality continues to improve, and the
community bank's pipeline for small
business loans is strong. " We're seeing
good requests come in with really
good credit quality, " Newgard says.
Merchants and Planters Bank is
in a rural agricultural market where
economic success depends on farmers
doing well and boosting ag-related
businesses. Farmers have had
79%
Asian-owned
77%
Black-owned
54%
White-owned
Source: Small Business Credit Survey, Federal Reserve Banks, February 2021
favorable yields the past few years,
and commodity prices are looking
good. Gowen says he's hopeful for a
prosperous year.
A SWIFT RECOVERY IS POSSIBLE
While recovery will vary from
industry to industry and region to
region, there's one thing everyone can
agree on: When the pandemic ends,
recovery will come swiftly. " The past
year has been dismal for the millions
that have lost labor income, " Gowen
says. " However, most economic
predictions are for a rapid, substantial
recovery if vaccinations increase and
COVID-19 numbers decrease. I agree
and am hopeful that this year will be
much better, but that's if-and only
if-we get COVID under control. "
After months of social distancing,
Americans are eager to resume a
more normal version of life, eating
at restaurants with friends and
attending plays and concerts.
" Everybody is sick of doing
nothing, " O'Connell says. " After all
the privations during the pandemic,
The pandemic's disproportionate impact
Percentage of small businesses in " poor " or " fair " condition
" Most small
businesses are
started by very
entrepreneurial,
robust and
rugged
individuals. "
-Paul Merski, ICBA
independentbanker.org Q 59
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Independent Banker - April 2021

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