MANVILLE: Local banks key to improving economy (audio included)

By Audrey Levine, Staff Writer
Click for Audio. Lending may be the key to assisting local businesses in the current economic crisis, as U.S. Rep. Leonard Lance, R-7th, said in an interview Friday, with local community banks leading the way.
   In discussing how best to help local businesses stay afloat while larger businesses are floundering and dealing with massive layoffs and cuts, Rep. Lance said the intent of Congress is to make sure that lending actually occurs.
   ”Most jobs created in America were (originally) created by small businesses,” he said.
   Unfortunately, Rep. Lance said, many small businesses have said the lending they are looking for has not been forthcoming in the past.
   ”I am anxious to ensure that it occurs,” he said.
   In order to move forward with lending to local businesses and providing funds to keep them alive in this economy, Rep. Lance said, he understands that additional spending might have to occur.
   ”I’m not under the illusion this (economic crisis) can be solved only by tax cuts,” he said. “Many economists believe interest rates will have to rise. I agree.”
   Following his swearing in to his first term in Congress in January, Rep. Lance was selected to be part of the financial services committee, dealing mainly with banking, insurance and mortgage issues. As such, he said, he is looking into spending by larger banks, including Bank of America, Wells Fargo and others.
   ”We questioned large raises given (by Bank of America) to Merrill Lynch employees,” he said. “I think that was completely inappropriate.”
   In looking into the banks’ activities, Rep. Lance said, he is also considering how they spend their TARP funding from the government. This Troubled Asset Relief Program (TARP) was created to help strengthen the financial sector by allowing the federal government to purchase assets and equity from financial institutions.
   ”TARP funds should not be used for salaries,” he said. “Congress is greatly concerned by the initial TARP expenditures.”
   Still, with lending, comes the cooperation of banks, which Rep. Lance said is easier to find with local community banks, rather than the larger corporations.
   ”Community banks have not been part of the problem,” he said. “They are the ones that lend to main streets across the country.”
   For Skylands Community Bank, on North Main Street, working for the local businesses is an important part of supporting Manville. According to Branch Manager Debbie Karpinski, there are several programs in place to assist and advertise for the businesses, and even the regular staff tries to lend support whenever possible.
   ”The staff makes sure we eat and shop at the businesses in Manville,” she said. “The businesses appreciate that. And the tellers know all the business customers by first name, and chat each morning with them about their families and weekends.”
   Among other services – like business credit cards, leasing opportunities, cash management services and financial planners – Ms. Karpinski said the bank has a business of the month, allowing a particular business to set up a table with product displays to encourage customers.
   ”The local businesses love this,” she said.
   Finally, for the businesses, Ms. Karpinski said the bank does what it can to get owners in and out as quickly as possible during the day.
   ”The businesses call in for coin orders, and we have them ready when they come in,” she said. “This way, they are in and out, and can get back to their businesses.”
   In addition, in an effort to help the Manville community itself, Ms. Karpinski said the bank sponsors different community organizations, including the Auxiliary Manville First Aid & Rescue Squad, Manville Education Association, Christ the King Parish School, Manville Music Organization, Manville North End Volunteer Fire Company no. 3 and the Policemen’s Benevolent Association.
   ”It is definitely a community bank environment,” Ms. Karpinski said.