North Idaho economy set for growth in 2021

Any discussion of North Idaho’s economy in 2021 starts with a look back at 2020. Our region, like everywhere else in the world, faced significant disruption from COVID-19. Local businesses adjusted to social distancing restrictions, new regulatory guidelines and major demand shifts. The sudden impact of the pandemic was a shock to residents, organizations and the economy. However, thanks to the Coronavirus Aid, Relief and Economic Security Act and its inclusion of the Paycheck Protection Program, many North Idaho small businesses were able to continue operations, ensuring that the impact to our economy was not as dire as it could have been during such an unprecedented time.

All of us at First Interstate Bank were honored to play a significant role in transmitting PPP funds to the local organizations that needed them most. In North Idaho, the bank funded more than 340 PPP loans totaling nearly $28 million. While it is clear the PPP provided much needed assistance during a critical period, challenges brought on by the pandemic remain. Today, businesses are still awaiting a return to normalcy, but there are signs of recovery. Residents are shopping locally, banks are continuing to lend, and employers have, for the most part, been able to maintain payroll numbers — three reasons to be optimistic for a stronger regional economy in 2021.

Another bright spot and positive economic indicator is North Idaho’s real estate market. Both residential and commercial segments have been phenomenally robust. As a proof point, when it comes to construction lending, First Interstate is seeing demand at or above 2019 levels, and we expect this growth to continue into 2021. To ensure supply keeps up with demand, First Interstate is doing our part to get funds into the hands of developers to expand housing options throughout North Idaho.

We believe, with the introduction of a COVID-19 vaccine, that 2021 will bring gains for small businesses. For a few more months, however, the pandemic could continue to have an outsized impact on organizations that do not have the capital resources to accommodate dramatic shifts in consumer behavior. Considering how critical this segment is to employment — small businesses account for nearly half of private-sector jobs — this group needs funding to be positioned for a successful 2021.

The right banking partner can make sure these small business owners and founders have what they need to survive the pandemic’s ongoing disruption, which is why community banks, like First Interstate, are so important. Community banks bring firsthand knowledge of the market to all client interactions, helping to ensure that money stays local and flows through the community to create a vibrant, protected economy.

It is true that COVID-19 has been a significant economic challenge for North Idaho, but we are better positioned than many expected at the beginning of the crisis. As market conditions improve and we put the pandemic behind us, regional businesses should continue to grow and anchor our communities through the coming year.

• • •

Lorrie Asker is regional president of Idaho and Eastern Washington for First Interstate Bank; she can be reached at lorrie.asker@fib.com. Jerry Lyon is the North Idaho market president for First Interstate Bank; he can be reached at jerry.lyon@fib.com.