The recession means a double whammy for small business; slow sales, and a slim to none chance at loans to keep them afloat.

North Carolina's private small business sector employs nearly 1.7 million people across the state.

Lt. Governor Walter Dalton and Senate leaders want to protect those jobs and help business owners with a Small Business Assistance Fund.

The fund would provide low-interest loans capped at $35,000 to help small businesses survive the recession, keep people employed, and even grow their business.

Senators reserved $3 million for the fund in their budget proposal, now the House must decide if it clears budget cuts.

There's more leverage with the Golden Leaf Foundation setting aside $5 million for small businesses considered good credit risks.

Interested business owners can apply for funding through the Small Business and Technology Development Center.

The center's Executive Director Scott Daugherty described the fund as " short term intervention so capital will help companies survive through the downturn."

"I think the fund can help small businesses hang in there for a period of time and help those who have an opportunity to seize it and grow," said Daugherty.

Small businesses earning less than $1 million and employing less than 100 workers would be eligible for the loans.

The owner of Loco Lu's Coffehouse, Joe Cerny, says he's not looking for a handout.  He likes the idea of a loan.

"With the cap of $35,000, it's not one company sucking the fund dry.  It is spread out over the state.  And again it's North Carolina helping North Carolinians and that's how it should be," said Cerny.

He'll most likely apply for the funding to purchase needed equipment and possibly hire a full-time employee. 

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