MADISON, Wis. -- Despite a recent stock market rally last week, no one is yet calling the current recession over.

As countless large companies across the nation have suffered losses due to the economic downturn, some small locally-owned businesses are trying to avoid the same fate. Many of them are turning to the University of Wisconsin-Madison's Small Business Development Center for advice, WISC-TV reported.

For example, Chalet Ski and Patio in Fitchburg is gearing up for their 30th spring season and its owners said that they're hoping that it brings a ray of sunshine in an otherwise cloudy economy.

"Consumers are being careful," noted Chalet owner Tony Millonig. "Consumers are shopping hard."

Neil Lerner, director of the UW's Small Business Development Center, agrees.

"They're still going to go out to eat," said Lerner. "They're still going to go to the movies, but they may be visiting more family-oriented places and restaurants with more medium prices."

Diners sticking with casual restaurants is what the owner at the newly-opened Megan's Family Café in Verona is counting on.

"Our niche is really more about pot roast, pie, peach cobbler, and pancakes," said owner Roger McMunn. "You know, just good old grandma's cooking."

Roger McMunn fulfilled his dream of opening up his own restaurant in January only to find the economy taking its toll on his business.

"We're certainly not anywhere close to where we need to be to continue to sustain the business long-term," concedes McMunn.

The SBDC at the UW stresses that constant innovation is needed to ensure long-term success.

"I think that to run a small business successfully, you always have to be on your toes," said Lerner.

That means more frontline involvement for some. "I think that the small business guy, the local owner, has got his hands on his business much tighter," said Millonig. "He's on the sales floor, he's interacting with customers, he's in touch with what's going on, on a day-to-day basis."

Both owners said they're confident that customer service and community support will help them through these tough times, and that they expect business to pick up in the coming weeks and months.

There's also the promise of some federal grant money that could help new and existing businesses.

According to the SBDC's Neil Lerner, the federal stimulus package includes grants to help bring in new owners and help existing ones out.

"The Small Business Administration guarantees loans through banks, so you need to contact your banker, but they're going to raise the guarantees up to 90 percent, which encourages banks to make loans, because the federal government through the Small Business Administration will guarantee that loan," said Lerner. "And for existing businesses that have existing loans, they have a business stimulus loan package that is not available yet that will make available up to $35,000 to make existing loan payments for up to six months." Lerner said there will be year deferral on the repayment of the second loan.

The UW's Small Business Development Center is providing advice for new and existing business owners throughout the state.

The Wisconsin Business Answer hotline is available Monday through Friday between the hours of 8:30 a.m. and 4:30 p.m. The number to call is 800-940-7232.