perhaps reflecting banks ’ concerns about the effects of the recession on borrowers ’ economic prospects and balance sheets. from the potential borrower ’ s point of view, particularly a borrower who has been able to obtain loans in the past, these changes may feel like a reduction in the supply of credit ; from the lender ’ s point of view, the problem appears to be a lack of demand from creditworthy borrowers. although lenders and borrowers may have different perspectives, our collective challenge is to help ensure that creditworthy borrowers have access to credit so that, should they choose, they can expand their businesses or increase payrolls, helping our economy to recover. data are from the federal financial institutions examination council ( ffiec ) consolidated reports of condition and income ( call report ), where small business loans, as reported in the report forms ffiec 031 and 041, schedule rc - c, part ii, are defined as loans with original amounts of $ 1 million or less that are secured by nonfarm nonresidential properties or commercial and industrial loans plus loans with original balances of $ 500, 000 or less for agricultural production or secured by farmland. at the federal reserve, we have been working to facilitate the flow of credit to viable small businesses. we helped in bringing capital from the securities markets to small businesses through the term asset - backed securities loan facility – the talf program. our bank stress tests of a year ago also drew private capital to the banking system, which helped offset credit losses and provided the basis for increased lending. i know that earlier in this conference you heard about the various interagency policy statements issued to banks and examiners, reinforcing our message that, while maintaining appropriately prudent standards, lenders should do all they can to meet the legitimate needs of creditworthy borrowers. 2 doing so is good for the borrower, good for the lender, and good for our economy. we have also conducted extensive training programs for our bank examiners, with the message that encouraging lending to small businesses that are well positioned to repay is positive, not negative, for the safety and soundness of our banking system. as we continue to examine the factors affecting small business lending, our thinking will be shaped by information from diverse sources. for example, our most recent senior loan officer opinion survey on bank lending practices suggests that, for the first time since the crisis began in 2007, most banks have stopped tightening credit standards. 3 we

also know, from the survey conducted by the national federation of independent business that while only 8 percent of small businesses list access to credit as their principal immediate economic problem, just 40 percent of small businesses attempting to borrow in 2009 had all of their credit needs met. 4 surveys like the two i just mentioned are informative, but getting a full picture also requires hearing from knowledgeable people with diverse perspectives on these issues. meetings like this one allow us to gather intelligence we and others can use to facilitate the flow of credit to small businesses – for instance, by identifying specific credit gaps, clarifying examiner expectations and procedures, improving coordination of small business support services, and ensuring the availability of technical assistance for loan applications. thus we can help ensure that small businesses are able to participate in and contribute to the recovery. the findings from the entire series of meetings sponsored by the federal reserve will be presented at a culminating conference at the board of governors in washington later this summer. learning from people engaged with small businesses and small business credit, like those here today, is vital if we are to make progress. i look forward to hearing your ideas and concerns, and thank you again for joining us. for example, see board of governors of the federal reserve system, federal deposit insurance corporation, national credit union administration, office of the comptroller of the currency, office of thrift supervision, and conference of state bank supervisors ( 2010 ), “ regulators issue statement on lending to creditworthy small businesses ”, joint press release, february 5. see the april 2010 senior loan officer opinion survey on bank lending practices available on the board of governors ’ website. see william j. dennis, jr. ( 2010 ), small business credit in a deep recession ( washington : national federation of independent business., february ).