Growth in small businesses helps improve the economy

Published: Wednesday, May 23 2012 2:45 p.m. MDT

Small businesses will be the key drivers in fueling economic growth and many small businesses are ripe for expansion, KSL contributor Rob Brough suggests.

In Utah, 97 percent of businesses qualify as small businesses, and they serve as the main source of new jobs. Contrary to perceptions, Brough says, banks are lending to small businesses, strengthening the companies and, in turn, invigorating the economy.

A recent Small Business Administration report suggested that quarter by quarter, small businesses with fewer than 500 workers outperformed large firms in net job creation about three out of four times from 1992 through 2010 when private-sector employment rose.

Brough gives suggestions for small businesses who are interested in obtaining a business loan. He suggests these tips in order to better position businesses to qualify for a loan before speaking with a lender:

Fine-tune your business plan

Ready your documentation

Review your credit

Do you homework

Know the risks and have a plan to mitigate them

Provide at least two ways to pay back the loan

Read more at KSL.com

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