In addition, in some markets, banks noted they were no longer readily taking real estate as collateral, especially if there was another outstanding lien against the property. Many banks have also reduced their loan-to-value (LTV) thresholds, increasing the amount of equity businesses need for new and refinance loans.
–  At a meeting in Cincinnati, small business owners said they were required to make cash payments when reassessments of LTV ratios resulted in insufficient collateral. If the payment was not made, the loan could be subject to default. For new loans, small businesses cited heavy collateral requirements, including personal guarantees, which made them reluctant to secure the loan.