Episode•November 25, 2021•17 min

Small Business Banking with Derek Ellington | Ep. 79

Derek sits down with Tiffany to talk all things small business banking! Derek dives into how to direct your money as a small business owner and how to move forward with a growing business model. About Our Guest Derek Ellington is head of Small Business Banking for Wells Fargo and is responsible for leading and accelerating the growth and focus on the company’s small business clients, which have up to $10 million in revenue. Derek was previously with Bank of America, where his 24-year career spanned leadership roles in retail banking, commercial banking, credit, and small business banking. Most recently, Derek was Business Banking executive for the Atlantic South Region and served as National Business Banking Digital executive and National Business Banking Environment, Social Governance (ESG) executive. Derek also served as president of the North Carolina Triad region, where he led associates across all lines of business, including Consumer, Wealth Management, and Commercial Banking. He is a frequent speaker on small business topics and received the Bank of America Global Diversity and Inclusion Award in 2017. Derek has been consistently active in the community. He has served on the boards of East Greensboro Now, The Greensboro Chamber of Commerce, Guilford Merchants Association and the Board of Visitors of NC A&T State University. Derek is a graduate of Troy University in Alabama with double majors in Computer Science and Business Administration. He later received a Master’s Degree focused on International Business from Birmingham Southern College. Connect with Derek LinkedIn Twitter: @dereketriad Connect with Tiffany on Social Media Facebook: Money Talk With Tiff Twitter: @moneytalkwitht Instagram: @moneytalkwitht LinkedIn: Tiffany Grant This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 - https://op3.dev/privacy

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Key Takeaways

1
Small business is big business
99% of the 32 million businesses in America are small businesses
Small businesses make up over 46% of U.S. employment
Wells Fargo supports over 3 million small businesses (10% of U.S. total)
2
Build a strong advisory team early
Small business owners need an attorney, accountant, and banker
Proper documentation speeds access to capital and grants
Transactional banking relationships miss valuable strategic guidance
3
Move to where the cheese is now
Business models successful 2-3 years ago may not work today
COVID forced many owners to pivot quickly to new products/services
Constant reevaluation and willingness to form new partnerships is essential
4
Grants vs. loans: know the difference
Grants do not require repayment; loans do
Many banks require two years of business history for loans
Grants are increasingly available for startups and growth
5
Wells Fargo is reinvesting PPP fees into small business support
$20 million grant to Foundation for the Carolinas for ~1,000 small businesses
Funds support starting, stabilizing, and accelerating businesses
Open for Business fund created from PPP loan fees

Intro

Tiffany hosts Derek Ellington, Head of Small Business Banking at Wells Fargo, to discuss funding, growth strategies, and resources for small business owners.
Derek Ellington leads Wells Fargo's small business banking efforts for companies with up to $10M in revenue. Previously at Bank of America for 24 years, he held leadership roles across retail, commercial, and small business banking, including serving as president of the North Carolina Triad region.

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– The Importance of Small Business

Derek highlights that 99% of U.S. businesses are small businesses, accounting for 46% of employment. Wells Fargo supports 3 million small businesses.

– Starting a Business: Education and Advisory Team

Key advice for new entrepreneurs:

SBA website for training and webinars
Build relationships with attorney, accountant, and banker

When you think about your financial health as a small business, you need an attorney, you need an accountant, and you need a banker.

– Building a Banking Relationship

Tiffany shares that moving from transactional banking to a relationship-based approach opened up new insights and support.

– Moving to Where the Cheese Is Now

Think about cheese on a conveyor belt that's constantly moving away. And if we're not nimble and adapting, the cheese is getting further and further away.

Business owners must constantly reevaluate models, adapt communication methods, and form new partnerships as the market shifts.

– Wells Fargo $20M Grant to Foundation for the Carolinas

Announced yesterday: $20 million in grants (not loans) to ~1,000 small businesses in Charlotte region for starting, stabilizing, or growing businesses.

Funds come from Wells Fargo's Open for Business fund, created from PPP loan fees.

– Hope USA Initiative

Wells Fargo's national campaign revitalizing 16 minority business districts through exterior building improvements and local nonprofit partnerships.

Resources

Topics

small business bankingbusiness fundinggrants vs loansbusiness growth strategyWells Fargo SBA resources entrepreneurshipCOVID business pivotminority business supportfinancial relationships