Banks & Small Business Loans- Discussion

One theme that has totally infiltrated small business news in recent years is about banks and small business loans. Here is a sample article from Crain’s New York: http://www.crainsnewyork.com/article/20120617/SMALLBIZ/120619917. Banks are lending! Banks aren’t lending! Should banks be lending? You won’t believe what the bank did to my business! We read and hear phrases like this all the time…but what is the truth? And despite the truth, what’s the right answer?

What’s been your experience with small business loans and banks? Do you think banks offered loans too easily in the past and perhaps tightening the reins is a positive thing as far as financial responsibility and lowering default rates? Or do you think banks should offer loans with the hopes of supporting successful business and having a positive influence on the economy? Somewhere in between?