What should I do? Should I expand my business? (Sponsor Letter)

Katie Day Photography

Luke Fraser, SEVP, Chief Operating Officer, OakStar Bank

In the current economic environment, the OakStar Bank team frequently hears questions like these. Amid recent inflation, increased labor costs, rising interest rates, and other seemingly rapid fluctuations that have had real impacts on businesses across the US, our customers understandably want to know more than just the terms and interest rates we can offer. Their questions speak to the central subject of this issue of SBJ’s Economic Growth series: local business confidence.

From my vantage point, I consistently see new business loan applications for everything from equipment financing to acquisitions. I see business owners keeping a close eye on their costs and even trying to time their expansions to coincide with favorable changes in rates and inflation. But the most important thing I see is that as a community, we are still pressing ahead toward growth. That tells me business owners in the Springfield metro area are cautiously optimistic about the economic road ahead and are confident in our local economy.

I believe community banks like OakStar—those that know their customers, take time to learn their businesses, and pair that knowledge with a deep understanding of the local economy—are in a good position to help maintain that confidence and create even more favorable conditions for local economic growth.

What this means at OakStar is simple: we recognize that no business fits neatly into a financial box. Each is unique, with its own nuances and complexities, strengths and challenges. Our customers are often the heart of their businesses—and by extension, of our community, which is why instead of looking at customer interactions as transactions, we offer valuable guidance and tailored solutions to fit unique business needs.

That’s also why we’ve leaned into government guaranteed programs like the Small Business Administration’s (SBA) loan program, which is designed to help remove barriers for businesses that may not have access to capital through traditional lending. When times get tough and economic uncertainties emerge, these programs help lenders maintain credit availability and can even provide customers with loans structured to help their businesses succeed. In short, they help banks provide stability to the businesses and local economies they serve.

That’s how we help at OakStar. As the #1 SBA lender in Missouri and Kansas,* our team applies expertise in SBA 7a loans to help more businesses in the Springfield area access capital through loan solutions tailored to optimize their unique financial circumstances. That could look like taking out a line of credit or refinancing a building to provide additional cash for the business. Regardless, we create custom solutions built from options that can include 100% financing, flexible terms, lower down payment requirements to help preserve cash, and more, helping local businesses continue to provide the products and services our community depends on.

OakStar will continue providing our customers with custom solutions and guidance regardless of the economic forecast. That said, I do believe rates will come down, that tariffs and inflation will level out, and that there is hope and even more opportunity on the horizon. From what I’ve seen, I think our Springfield customers feel the same way.

Perhaps that’s because they know our local economy has historically maintained steady growth. While we can’t know what the future will hold, my experience in local community banking has shown me that Springfield’s economic activity is often just isolated enough from booms and busts in large coastal cities to enjoy a fairly resilient market. If and when we see effects from big swings in housing valuations or other metrics making news in larger metro areas, they tend to reach us months or even years later and are typically mild by comparison. In other words, history tells us that our confidence in the Springfield economy is earned.

Businesses have understandably had to navigate recent uncertainties and be cautious in their decision-making, but we’re still seeing job growth and new projects. In my opinion, that points to favorable conditions for steady growth—the kind of growth I advise my customers to work toward. Shooting for the moon and getting there quickly might have its time and place, but growth that makes sense and is sustainable will ensure you don’t risk outgrowing your ability or capital.

To best prepare for growth, surround yourself with a group of professionals you trust, who can advise you in the areas of business in which you’re not an expert. Make sure you have a good banker, attorney, accountant, insurance agent, human resources expert, and anyone else you need to achieve the right growth for your business. They can provide essential guidance in any economic environment and help you be ready to capitalize on the growth in Springfield’s local market.

—Luke Fraser, SEVP, Chief Operating Officer, OakStar Bank