Banks to Start Loaning Again in 2011

Did anyone see the front page of the Wall Street Journal today? There’s an inspiring article that every small business owner and future entrepreneur should read: Banks Open Loan Spigot.

According to the article, “Moody’s Analytics estimates that commercial and industrial lending in the fourth quarter has grown .02% from the third quarter, to $1.22 trillion, the first quarterly increase in two years.” Moreover, when business lending increases, it’s usually a good sign that the economy is well on its way to recovery.

Although new activity varies from bank to bank and industry to industry, JP Morgan Chase, U.S. Bancorp and Wells Fargo have all seen increases in lending and credit availability.

It’s important to keep in mind that lending typically rises toward the end of the year as companies increase inventories, so some analysts warn that the uptick may not stick around in 2011.