Get in the game: banks are ready and willing to lend to small businesses.

• Author: Sutherland, Spencer
• Position: Business Trends

The "R" word. Two-and-a-half years ago, it was still being spoken in whispers, as though if it was tiptoed around delicately enough, the recession would somehow pass us by. Though economists were slow to confirm the official beginning of what would later be coined the Great Recession, they were much less timid in recently declaring its end.

Utah's lenders are hoping that with the economy on the mend, the small businesses that have struggled to keep their doors open during these tough times will find their way back to the funding table.

"The businesses that have survived have done it by cutting expenses in order to sustain themselves through the recession," says Lori Chillingworth, executive vice president of business banking at Zions Bank. "In the last six months, they've been wary about what to do next--they don't want to hire, expand or buy new equipment because they don't know if there's going to be a [recession] double dip."

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While small businesses may feel trepidation when deciding to take on additional debt, there are some real benefits of applying for a loan during shaky economic times. First and foremost, there is plenty of money to borrow.

"The capital and liquidity at the banks was dried up a bit a few years back," Chillingworth says of the credit crunch that accompanied the recession. "Since then, the banks have recapitalized. We have a lot of capital and a lot of liquidity. The supply of money is there."

In the case of financial firms like Chase, more small business dollars are available now than ever before. "We recognized in the latter part of 2009 that it was a tough economy, yet we were fortunate enough to have the financial strength to get through it," says Brian Teran, senior vice president of business banking at Chase. As a result, the company upped its small business loan pledge from $6 billion in 2009 to $10 billion in 2010.

In order to get those additional funds into the hands of borrowers, Chase had to get a bit creative. The company introduced several new incentives, including Loan for Hire, a program that rewards business owners who add new employees. For each new employee hired (up to three employees), the small business receives a half-point interest rate discount. "[The program] not only helps small businesses, but increases employment here in Utah," Teran says. "The lower interest rate has been a real advantage to [borrowers]."

Chase is also paying more attention to applications that don't...