Yes, It will definitely affect your ranking, all these things are better for local seo, I recommend you to use local keywords variation. I tell you again keyword variation not direct use keywords. I personally do this I ranked most of my pages on top. Like, if you have 1000 words of content then make sure you use keywords variation in top 25% content, then in another 50% of content mix your 4-5 keywords and use them and in last 25% content use deirect keywords, it will help you.
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RE: Backlinks from local businesses