Some financial institutions reported weaker quality in loan applications from small businesses. Comments related to credit demand by small businesses included issues of reduced credit quality, reduced confidence, a need for additional technical assistance, and interest in government contracting and entrepreneurship.
  10  Reduced credit quality – Banks generally attributed the decrease in overall lending to small businesses to their declining sales and asset valuations. They reported lower overall demand for credit from creditworthy businesses. Some financial institutions also noted that applications for small business credit generally have  BIS Review 99/2010  become weaker as the challenging economic environment continues.