Despite the economic downturn that has challenged state and local businesses this year, local bankers say they anticipate business picking up again in about two years, and they advise business owners who are struggling now not to put off seeking financial help. There is no tightening of local business lending as a result of the national financial crisis, they report, and qualified applicants can still get business loans here.

"We're looking at another couple years of status quo, meaning things are not going to get much better

or much worse," Jim North, president of St. Ignace First National Bank, told The St. Ignace News, saying there is "plenty of capital" on hand for local lending. "I do see a light," he said, "but it's a long way down the track."

After that, economic conditions could brighten. Mr. North looks ahead to the turnaround. He'd like to see heavy joint promotion of travel sites here, saying, "If we could get the Soo Locks, Mackinac Island, the parks, the nature trails - if we could promote all of that as a package - wow! We're positioned to thrive once the economy gets better."

Similarly, Central Savings Bank CEO W. W. "Frenchy" LaJoie said a few businesses in his bank's service area, including St. Ignace, did better this year than last, but he doesn't expect a solid upturn until 2010.

"Some of our customers are going to have a little bit of a difficult time," he said. "We're going to have to work with them."

It's, indeed, rough going for many business people. Marianne Huskey's Soffie's Ltd. casual clothing store in downtown St. Ignace was drawing 90 to 120 customers daily, but they were just looking and not buying, typical of her last two years. Finally, in frustration, she shuttered her four-year-old business this summer, vowing never to go into business in this area again.

"There is no business here," she said. "I am done. It's too high risk to continue."

Mike Buby had been in the bicycle business for five years in St. Ignace, but he has now closed his Marlee's Cruisers store for good.

"For five months, it does very well," he said, "but it doesn't do well enough to sustain 12 months of expenses. We will not reopen."

Little traffic in the winter and reduced traffic in the summers have taken a toll on food services, as well. Six restaurants in St. Ignace have closed in the past two years.

Local businesses have suffered in what is possibly the worst Michigan economic downturn anyone can remember since the early 1980s.

"It's the toughest I've seen in the 25 years I've been up here. I've never seen such adversity," said Bill Bertchinger, chairman of the Mackinaw Area Visitors Bureau and owner of Budget Host American Boutique Inn in Mackinaw City. He cites industry sources that rank Michigan 50th in percentage of hotel rooms occupied.

All see the biggest reason as a weakened Detroit auto industry. Southeastern Michigan was the source of much tourist traffic to the Straits area. While Detroit's problems were decades in the making, they now are worse than ever.

"Businesses are very stressed," Mr. North said. "They're trying to cut expenses any way they can. They are working harder than ever to balance the books. Their owners are grasping for things to get better."

He estimates that since September 11, 2001, the day of the terrorist attacks, the number of tourists traveling to the Straits of Mackinac has dropped by 30% to 40%, a "seven year downturn."

"We have to go out and attract people who have never been here before," said Mr. Bertchinger.

Local business success stories can still be found.

Margie Denoyer of Cedarville and friends opened the Wooden Door antique shop in June, staying open until September 30 after what she describes as a very good season. She intends to reopen in the spring, although at another location.

Robert Smith, also of Cedarville, started Boat House, another antique shop in Cedarville, and had what he calls a very good first season.

"We're optimistic," he said. "We drew people from Drummond Island and Mackinac Island. We did very well selling wicker."

In St. Ignace, Fred Paquin and his family got a loan for $250,000 from First National Bank to expand his newly purchased Gateway Lanes on Ferry Lane. A new bar in an addition, scheduled for completion by the end of the year, will accommodate 35 people. There will be a game room where the current bar is. Mr. Paquin and his family are optimistic for the business, so much so they've invested about $425,000 in it.

"It costs you maybe $50 to go to the movies with your family," he said, "but you can have a nice evening of bowling for maybe $25 or $30."

So what can business people do to get through the current economic challenges?

Mr. North boils it down to two words: Be prepared.

"If you foresee capital needs, get moving early. Don't wait until the last minute. And come to us prepared to be honest and forthright. Believe me, we've heard it all before."