ATLANTA -- Borrowing money oftentimes isnt the best thing for a small operator to do in a down economy, but if you must - or plan to do so as soon as the recovery becomes more evident - its good to know how the market is changing.

Small-business lending was dead in the water last year as the credit market collapsed, but CNNMoney.com reports it has "managed to heal itself" without help from federal stimulus funding.

"Figuring out how to revive the secondary market has been a priority for the Small Business Administration and the Treasury Department. The government set aside billions to invest, vastly eclipsing the money earmarked for other small business stimulus efforts.

"But while government agencies struggled to get their programs up and running, the market came back to life on its own," says the CNN website.

The SBA has been offering money through its Americas Recovery Capital Loan program this year, but there have been persistent reports of roadblocks when small outfits tried to borrow.

However, earlier this month a program representative said the number of participating lenders and loans is rising.

The SBA can provide up to $35,000 for small businesses facing immediate financial hardship. Some SBA lenders will offer loans under the program as long as funding is available, or until Sept. 30, 2010, whichever comes first.

As of the end of August, the SBA said it had approved guarantees on $52 million of the $336 million available in the program.

More than 500 lenders are reported to have made program loans.

The loans carry a 100 percent guaranty from the SBA to the lender and require no fees paid to SBA. Loan proceeds are provided over a six-month period and repayment of the principal is deferred for 12 months after the last disbursement of loan money. Repayment can extend up to five years.