Banks are lending, and any creditworthy individual or business has absolutely no problem obtaining inexpensive credit in this environment. The big problem is that "joe sixpack" or "joe sixpack business owner" isn't creditworthy. These people weren't creditworthy a few years ago, but, for some strange reason, were given credit anyways.
This policy is healthy for small business, forcing owners to earn the money they need to open, expand or improve, instead of guessing that tomorrow's profits will pay for today's payments on their lines of credit. I applaud this policy, and further hold it would be best for the nation and government to be forced into the same framework of fiscal responsibility. Pity that common sense and government spending/individual emotional spending are contradictions in terms.
I walked into a bank about 20 years ago and asked for a $2k loan to fix my car that I had just wrapped around a tree. They laughed at me. Fast foward to modern day....I get checks in the mail for that amount plus a zero after it. I can sign my name today and get 20k in 20 minutes. How sad is that?
ARC loans - up to $35k business loans - if qualifying: http://money.cnn.com/2009/06/08/smallbusiness/arc_emergency_small_business_loans.smb/index.htm the reality: http://www.pbs.org/newshour/bb/business/july-dec09/smallbusiness_12-14.html