How the Huntington Bancshares Acquisition of Cadence Bank Could Affect Small Businesses Seeking Government Contracts

In early 2023, Huntington Bancshares completed the acquisition of Cadence Bank, a move that consolidates two significant regional banking players. While this merger may seem like a routine banking sector update, it holds important implications for small businesses—especially those looking to navigate the complexities of federal contracting. Here’s what small business owners seeking government contracts should understand about this acquisition and how it might influence their financing and federal procurement strategies.

Understanding the Background: Cadence Bank and Huntington Bancshares

Cadence Bank was known for its strong regional presence and a solid portfolio of commercial banking services tailored to small- and medium-sized businesses. Huntington Bancshares, headquartered in Cleveland, Ohio, operates a wide network with a focus on technology-driven banking and expanded commercial services.

The acquisition aims to create a larger, more diversified bank with enhanced capital resources, technological capabilities, and customer service platforms. For small businesses, the practical takeaway is that banking relationships and financial products that support government contract bidding and performance—such as lines of credit, SBA loans, and cash management—may be affected.

What Small Businesses Seeking Federal Contracts Need to Know

1. Financing Stability and Access
   Federal government contracts often require upfront capital for purchasing materials, subcontracting, or meeting compliance milestones before payments are issued. Cadence Bank historically provided competitive lending and tailored financial products to small businesses engaged in or aspiring to enter government contracting.

   Post-acquisition, Huntington’s larger balance sheet and technology resources may enhance financing options, potentially offering more robust lending products, faster approvals, or improved cash flow management tools. However, the merged institution could also restructure certain product lines or tighten credit policies as part of integration efforts, so businesses should proactively engage with their bank contacts to understand any changes.

2. Banking and Treasury Services Relevant to GSA and Other Federal Contracts
   Government contracts often involve strict invoicing, timely payments, and compliance with financial regulations such as the Prompt Payment Act. Huntington Bancshares likely will introduce more streamlined treasury and payment services that can benefit small businesses by automating accounts receivable, improving electronic payment processing, and integrating with government payment systems.

   These enhancements might reduce administrative burdens associated with GSA schedules or other contract vehicles listed on SAM.gov, helping small businesses maintain compliance and smooth cash flow.

3. Relationship Continuity and Support for Contract Compliance
   For small businesses working with subcontractors or managing multiple government contracts, maintaining consistent banking partnerships is crucial. Any shift in account management or customer service resulting from the merger could impact how quickly financial issues are resolved—important when deadlines and contract compliance are at stake.

   Small business owners should confirm that their relationship managers understand federal contracting requirements and have familiarity with procurement-related cash flow needs.

4. Potential Impact on Government Contracting Trends
   With larger banks like Huntington expanding their footprint and product offerings, there is a trend toward bundling business banking services with advisory support, including assistance with navigating federal procurement landscapes. Small businesses can potentially leverage this trend by seeking banking partners that provide educational resources or even introductions to contracting opportunities.

Recommendations for Small Businesses

• Review Your Banking Terms Early: Reach out to your Cadence Bank representative (now part of Huntington) to clarify if there will be any changes in loan products, fees, or account services critical to your contracting work.
• Consider Financing Needs in Your Government Proposals: Knowing how your banking partner accommodates contract-related cash flow issues can be a competitive advantage, especially for GSA schedule holders or those pursuing contracts with complex payment terms.
• Leverage Online and Treasury Tools: Ask about new digital platforms or payment processing upgrades post-merger that can streamline government invoicing and reduce errors.
• Maintain Compliance Awareness: Any change in financial management should be accompanied by a review of contract compliance controls—payment schedules, audit readiness, and reporting—to avoid pitfalls during federal procurements.
• Explore Relationship Manager Expertise: Confirm if Huntington has bankers dedicated to supporting small businesses in federal contracting and engage them for strategic advice.

Final Thoughts

While the Huntington Bancshares acquisition of Cadence Bank primarily signifies banking sector consolidation, its ripple effects can influence small business government contractors’ financing, compliance, and cash flow management. Staying ahead means proactively managing banking relationships and leveraging any improved banking services to bolster your government contracting capabilities.

As you prepare bids or manage existing contracts on platforms like SAM.gov or GSA schedules, remember your bank relationship is a foundational element of your operational stability. A larger bank with expanded capabilities might be an asset—provided you understand and adapt to the changes the acquisition brings.

For small businesses breaking into or expanding within federal contracting, maintaining open dialogues with financial partners like Huntington Bancshares is key to navigating procurement complexities successfully.

GovScout helps small businesses break into federal contracting. We simplify SAM.gov, surface winnable contracts, and give you the insights to grow in the public sector. Learn more at govscout.io.