Starting a small business can be a difficult road to go down, but with the current economy, it is the only way for many people to have an income. Small businesses are they key to improving the economy by creating more jobs, but ironically it is nearly impossible for these businesses to get the capital they need from banks to expand their company.

Currently, an estimated 25 to 27 million small businesses can account for anywhere from 60 to 80% of all jobs. With more small businesses, even substantially larger amounts of jobs will be available.

Thanks to the baby boomers, the country saw a surge in mom and pop shops over the last decade. Since 1996, the percentage of baby boomer entrepreneurs who started a business has grown from 14.3% to around 23.4% as of 2013, and is continuing to increase. However, as this generation grows older, younger entrepreneurs will need to take up the reins.

Unfortunately, there are numerous expenses that need to be covered when creating a business that can be difficult, considering they would not have any sales of inventory yet. Working capital loans are often an effective method for generating the finances needed to expand a company. Rather than just using whatever hard cash is available to cover day-to-day operations, small business loans can offer some extra funds to improve the efficiency of daily duties.

Having working capital loans for small businesses can determine their success or failure. According to the United States Small Business Administration, the second largest reason for the failure of small businesses, only behind “lack of experience,” is insufficient capital.

In order to continue the recovery of the United States economy, small businesses must be able to thrive. The first step will be to use small business working capital loans to expand to the point of generating jobs.