Small business a reliable economic engine in good, bad times

To the editor:
    On the occassion of the 25th anniversary of National Small Business Week (April 21–25), we recognize the importance of small business in sustaining the overall economy.  Even as big companies are shedding jobs, small businesses are growing. According to ADP’s National Employment, companies with more than 500 employees lost 52,000 jobs from February to March 2008, but small businesses, with fewer than 50 employees, added 55,000 jobs.
    In the current economic climate, many small business owners may be concerned that they won’t be able to get the capital they need to support growth. However, for companies with a stable financial history and a strong plan for their investments, there is credit available.
    One program, often not obvious to small businesses, is the U.S. Small Business Administration 504 loan program. This loan program can be used to finance the purchase of land, buildings, equipment and machinery without depleting working capital. Under the program, banks partner with certified development corporations (nonprofit lenders with an economic development mission), sharing the loan risk and allowing the borrower to make a down payment that can be as little as 10 percent.
    Local economies get a boost from the program, too. In fact, the 504 program was designed specifically to stimulate regional economies by requiring job growth or retention as part of the projects. In the end, the 504 program is a double win for local communities, with a direct correlation to both the tax base and job creation.
    Amidst the current economic picture, small business growth is a bright spot. Both in good times and challenging times, small businesses continue as a reliable engine in our national economy.
Steven L. Gagnon,
Senior Vice President
Business Banking
KeyBank N.A.