Mayor Richard M. Daley announced today the establishment of a $5 million loan program designed to spur small business growth.

"We do this because small business are good for their owners, good for their employees and good for Chicago," said Daley.

Businesses could receive loans of between $25,000 to $250,000 for working capital, equipment purchases and product development.

Without capital, Daley said, small businesses will have a "very, very difficult and challenging time."

The city will make loans to businesses that  are less than five years old, have profits of between $250,000 and $2 million, and have fewer than 20 employees. Applicants must also be in compliance with city licensing requirements and current on their tax payments.

Daley also noted that small businesses account for half of all private sector jobs, generated 60 to 80 percent of the nation's new jobs over the last decade and produce 13 to 14 percent more patents per employee than large companies.