According to the most recent (2nd Quarter 2011) survey of Senior Loan Officers from the major banks in Canada, it seems most bankers agree there is an “easing of lending conditions” for small business. The survey also indicates lending conditions have eased for 8 consecutive quarters (or 2 full years).
The graph shows results of the survey since 1999. The bars in the top half of the graph indicate period/years where the banks thought it was tougher to get a loan. In other words there was a “tightening” of lending practices.
When the bars fall to the bottom half of the graph the survey results indicate the loan officers felt it was easier to get a loan – referred to as an “easing” of lending.
The survey/graph clearly demonstrates (and most business owners we’ve talked to agree) that the 2008-2009 economic downturn was the most difficult period in the past 12 years for small businesses to get a loan.
Surprisingly, the most recent survey of bankers (July 2011) indicates that it is easier to get a small business loan now than any period in the past 12 years. Given the economic events of late July and early August it will interesting to see the next survey results