Big Banks Loosen Lending Standards: Does it Matter?

The front page of the Wall Street Journal today proclaimed that “Big Banks Loosen Lending Standards”. Further reading revels that while credit standards are becoming more liberal, demand is still weak; especially among businesses with annual sales less than $50 million.

So the question is, will the easing of lending supply also spur demand or will the deleveraging trend (see below) continue within this key driver of economic growth, the small business?