According to a report from Big Builder OnLine citing an AP report, the Federal Reserve has reported larger banks are beginning to lend more to smaller businesses. According to the article, the Fed survey indicated this is the first report of easing lending standards in about four years. The Fed defines a small business as one with less than annual sales of 50 million dollars.
In addition to the eased standards in Small Business lending, some banks reported in the quarterly survey done in late July by the Fed that they have also found some larger banks have also eased standards for some types of Consumer loans, including installment loans.
The Fed chairman Ben Bernanke indicated making credit available to sound small business was crucial in the economic recovery.
This news can only be good for the construction industry and home improvement companies and their customers, as they begin to ramp up for what is expected to be a better 2011.