Raising capital can be challenging in a good economy, but it's likely to get much more difficult given the current economic downturn.

Lending experts say there is money out there for small businesses, though getting your hands on some may require more work and diligence.

"Banks have become more cautious," says Keith Leggett, a senior economist with the American Bankers Association in Washington. "That reflects the fact that we are seeing fairly flat economic growth at this time and an increased probability that we may be slipping into a recession."