Economics: Banks Ease Small Business Lending Standards

Banks have eased lending standards for small businesses for the first time in nearly four years, the Federal Reserve said Monday. Separately, financial firms said consumers continue to better manage their credit card payments, with fewer customers defaulting or making late payments.

In its new survey of bank lending practices, the Fed found that the loosening of loan standards was occurring primarily at the country's largest domestic banks.

The Fed said it was the first time it had found relaxed lending standards being imposed on small businesses since late 2006.

For more, see Banks Ease Small Business Lending Standards August 16, 2010, at National Public Radio.