Banks also reported an increase in demand from firms of all sizes, for the second straight survey. Banks also reported that the number of inquiries from potential business borrowers regarding new or increased credit lines increased. Banks reporting stronger demand cited shifts in borrowing from other bank and nonbank sources, as well as increases in customers’ funding needs related to inventories, investment in plant or equipment, accounts receivable, and mergers and acquisitions as important factors underlying the increase. Banks reported that their credit standards on commercial loans to both large and middle-market firms and to small firms were little changed over the first quarter of 2012.

It is no secret: banks are competing for high grade loans, and rates are low.  While this continues to be good news for high grade borrowers, less-than-perfect borrowers are seeing only little relief.  Now if I could only figure out how many banks constitute a modest versus a moderate number as far as the Federal Reserve is concerned…and credit crisis solved.

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In addition to today’s news from the Fed, 2012 has begun with a flourish of economic stories reporting that the economy is picking up. Business Week is reporting that “Manufacturing in the U.S. grew in December at the fastest pace in six months.” A further sign of the economy’s growing momentum came from the Institute for Supply Management (ISM) that reported its factory index rose to 53.9 in December up froom 52.7 in November again beating expectations of economists. Any reading over 50 indicates expansion.

This week Suzanne Sataline reported for American Express Open Forum that most small businesses surveyed by the Manta SMB Wellness Index, a quarterly index of the state of small businesses, responded that 2011 was a successful year for their businesses. Among the findings of the survey that Sataline reported:

Small business owners tend to be optimists. Nearly three-quarters of those surveyed said the small business economy would improve this year. These folks are a determined lot: 62 percent ranked growing their business as their top New Year’s resolution–ahead of improving relationships with their family, working out more and eating healthier.

According to Pamela Springer, president and CEO of Manta:

Small businesses are the lifeblood of the national economy, and while things have been difficult in 2011, we see every day that small business owners are committed and hard-working and don’t take no for an answer.  In fact, our survey shows that 90 percent of small business owners are optimistic about their company’s growth in 2012.

Question is, what gains are you seeing in your business?

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