Banks not quite giving away money, but survey shows they're being less strict.

According to Chicago-based Northern Trust (NTRS), business credit is getting a bit easier to grab on to. A recent Senior Loans Officer Survey shows that underwriting standards for loans are loosening up under the collar. Commercial and industrial loans to large firms were easier to come by in July than in April and an about-face from 2008 Q4’s tight-lipped discussions. The net percentage of banks that were stringent about the terms of their loans decreased from 40% in April to 30% in July. In last year’s fourth quarter, it was 80%. The cost of borrowing also dropped. (An example of a stricter parameter is increased premiums on loans). Results are based on responses from 55 domestic banks and 23 U.S. branches and agencies from foreign banks according to the Federal Reserve Board. Banks say demand for loans is still weak but fewer banks tightened their standards on prime residential real estate loans by 55% from a year ago.

With all the elements that go into growing an economy or a business, there's a lot of information to digest. As we are seeing from the health care town halls, what we take from that information doesn’t always align smoothly with the opinion of our friends, family or colleagues. Friction causes heat and that's OK. Americans have expressed an ample dose of skepticism since George Washington signed on for a second term and spurred some citizens to shout: "Monarch!"

As it was with Washington in ’93, the future of America’s economy is up for debate in ’09. BusinessWeek’s community is as good a place as any to delve into the disparate thoughts on where our economy is headed. There are the pessimists -- Sue writes, "So much for democracy. Bye bye middle class." There are the skeptics -- Dougalmac predicts "the fiscal future of the country looks questionable at best." There are the conspiracy theorists -- More Koolaid From The U.S. Labor Department (what a perfect blend of form/function) writes, "This is going to be just like 1984! The worse it gets, the more the government and the media will make you believe things have improved."

That’s a bold claim, especially in light of a nascent housing rebound, slowing job losses, increased consumption and renewed, if spotty, employer confidence. But, for Koolaid and others tired of hearing only from the media, HERE'S A SLIDE SHOW with 13 entrepreneurs and business owners from across the country that might make you think things are improving. To contribute your own thoughts -- positive, negative, lagging, leading -- comment below. You can also check out what business leaders have to say.

International shipments to ports have been on the rise since bottoming out in February at 120,000, the lowest since Panjiva started tracking in July 2007. The New York-based company sources U.S. Customs Data for daily information on imports. Despite the increase in shipments, there's no cause for trade-deficit concerns as Mike Mandel points out. Panjiva profiles 700,000 companies across 190 countries in the attempt to provide American companies doing business abroad with background info about their partners.

During President Obama’s trip, he visited the Navistar International Corp. factory, pledging $39 million to help the company produce electric trucks. Conover thinks “green” jobs like this are a bright spot in the area’s future, especially if they can employ many of the city’s idle auto workers. In all, Obama has pledged $2.4 billion in stimulus money to create batteries and electric vehicles and much of that money is focused on Midwest states like Indiana and Michigan. Purdue University in West Lafayette will receive a $6.1 million grant to establish educational and training programs for people to design, manufacture, and maintain electric vehicles.

Conover says that other industries continue to look strong in the Midwest, such as agriculture and life sciences. A recent Indiana Business Research Center study says that 23% of new jobs in Indiana between 2001 and 2007 were life sciences jobs, including pharmaceutical research and development, medical equipment manufacturing, and biomedical engineering. “These are high-paying jobs,” Conover says. The life sciences industry accounts for a fifth of Indiana’s manufacturing output.

If Obama comes back to Elkhart in a year, Conover hopes that he finds people employed in jobs that the president helped create. “There’s a lot of interest in the Midwest in tapping into paths that look a little brighter than the ones we’ve been down,” he says. “I think that’s a cause for optimism.”

University Circle Inc., a nonprofit organization, used what it learned at E4S meetings to cut fixed costs. Instead of printing its annual report, UCI designs and distributes a virtual version, saving thousands of dollars a year. UCI encourages employees to compost organics and recycle plastics, paper, and metal. The organization has cut its garbage output in half and now pays for bi-weekly pick-ups instead of each week. UCI President Chris Ronayne also bought six bikes for employees to use instead of driving.

E4S's members are dedicated not only to protecting the environment but doing it in a way that boosts their bottom lines. Cleveland has been marred by its imperfect environmental record -- the Cuyahoga River has caught fire ten times since 1868. Today it's working to be what Mayor Frank Jackson calls "A green city on a blue lake."

The Discover Small Business Watch index gained ground as well, nudging up from 80.9 in June to 82.1 last month. A shade less than a third of the 750 small-business owners think the economy is getting better – in June, it was 26%. The back-to-back growth in optimism comes despite problems getting credit and internal cash flow issues. Business owners say their concerns are eased a bit because of a perception that inflation won’t kick in any time soon.

Dropping a point was the National Federation of Independent Business’ Small Business Economic Trends optimism index, which slipped to 87.9. The NFIB surveys 758 firms about their optimism, borrowing, credit, job vacancies and a host of other business questions. More than 10% of respondents said they have job opening, perhaps a boon for 247,000 nonfarm workers recently laid off.

The auto sector actually brought on workers. In the motor vehicle and parts sector, 28,000 more employees entered the job market last month. The cash for clunkers (it no longer needs quotes) program helped spark annualized sales of 11.2 million autos. This is 13% growth over June’s numbers. Ford saw year-over-year gains (2%), a term that at times seems like a foreign language. “Year-over-year gains.” BusinessWeek writers David Welch and David Kiley note that Hyundai is even giving dealers advances of up to $4,500 until the government processed clunker applications. A move that signifies not only established lines of credit but the private sector's faith in a government-run operation.

In Mishawaka, Ind., decal-maker Valley Screen Process realized a 50% increase in orders compared to June. President and CEO Karen Barnett’s business is less than 30 miles from Elkhart, Ind., the RV-capital that has been a symbol of America’s recession. President Obama has twice visited the hard-hit Midwestern town to barnstorm for his economic stimulus. Valley Screen Process counts on RVs for much of its business and Barnett recently told BW, “For the first time in over a year, I feel hopeful.”

In New York City's financial sector, where an estimated 70,000 jobs have been lost, profits are finally back up. BusinessWeek writer Esmé E. Deprez quotes a somewhat surprised analyst at the city's Independent Budget Office who says the sector's recovery "seems to be happening quicker than we expected." Part of the profits have come from proprietary flash and high-frequency trading, which are under fire from Sen. Chuck Schumer (D-NY) and the SEC mostly because of their lack of transparency.
Some SEC regulation is good thing too, and I'm sure we're all confident in Goldman's ability to make profits. The firm's 2Q net income was $3.4 billion, bringing it closer and closer to oil-company margins.

Another early riser was Whole Foods, whose share price increased 16% in one day this week. The stock has tripled in value since January, a surprising leap considering the attention given to consumers' down-market food purchases throughout the winter. The Whole Foods jump suggests two things: 1) Shoppers are willing to spend some more on their produce and specialty items. 2) Investors feel safe putting their money into the market again. I vote for #2. You?

“Auto sales have turned up in both countries, with the U.S. advance spurred by a wildly successful incentive program,” BMO Capital Markets chief economist Sal Guatieri says in the Aug. 4 edition of North American Outlook, a bank publication. His headline: "Good-bye Great Recession. Hello So-so Recovery."

“Home sales have risen for three straight months in the U.S., led by previously hard-hit states like California and Arizona. Home prices have likely bottomed, with the Case-Shiller index posting its first monthly increase in three years. This could unleash a wave of pent-up demand for homes.”

For now, our economic future is open for debate. The U.S. Gross Domestic Product declined only 1% in the second quarter, giving traders cheer and the stock market a much-desired boost. The Dow is up roughly 800 points since early March when it fell so deep it may have touched hot liquid magma.

The NBER doesn’t take into account the market, but we often do when gauging the country’s economic health. If the Dow hits 10,000, there will be a surge to declare the end of the recession – or at least to start spending, borrowing and lending like it’s over.

Or not. Depends on your outlook. How do you weight the ocean of economic information each day? Do you place more importance on employment figures or company earnings? Manufacturing or tech? Where is America’s economy stealing off to and can we sign a warrant for the recession’s arrest?

This is the discussion going on in BusinessWeek’s Debate Room. Reader JP says the economy will continue to suffer. “A jobless recovery is no recovery,” he writes. James Angel of Georgetown’s McDonough School of Business argues, "Financial markets are already signaling that the panic phase is over." Where do you stand?

There’s a common phrase these days in media circles: “Even is the new up.” In other words, as businesses pull ads like Bugs Bunny pulls stunts, companies are okay with flat revenue.

So it goes with America’s economy. GDP growth fell only 1% this quarter after plummeting like an anvil, 6.4%, the quarter before. Some experts see this as a sign that our economy has hit the flat part of the pendulum and may be coming back up. BusinessWeek writer Jim Cooper notes that consumer demand is overpowering present inventory, a recipe that should equate to increased third-quarter production.

Traders saw the GDP’s flattening fall as a sign of good news too, helping boost the Dow up another 17 points to 9,172. If you’re looking for the brightest light within the market, BW’s Ben Steverman reports that coffee companies are realizing caffeinated stock earnings. Diedrich Coffee (DDRX) stock has been just cartoonishly silly, rising more than 6,000% -- to $23.77 -- since the beginning of 2009. Bigger players like Starbucks (SBUX) and Caribou (CBOU) gained 87% and 311%, respectively, since the end of 2008.

BusinessWeek/YouGov’s Optimism Index saw gains as well, albeit smaller ones. Respondents are more confident that the economy is getting better and the index saw a 4% uptick in those who think the stock market will be higher a year from now.

Unemployment tallies continue to grow, but Bangalore reports that an important category among those out of work is declining. Her conclusion: “the pace of layoffs is diminishing.” So, on the one hand, things look worse. On the other, they could be worse still, and hidden in the overall numbers are signposts of improvements.

It’s Friday.

That’s the first reason for optimism.

The second is BusinessWeek/YouGov’s Optimism Index is up two points to 47% this week. Our Dow Jones industrial average showed it’s not afraid to creep back up past 9,000, a nice lead-in to July’s last weekend. Rising on the Dow’s back is an increase in respondents who think the stock market will be higher a year from now.

Despite the chipper news from Wall Street and continued profits for Goldman Sachs via its mind-bending stock “pickers,” BusinessWeek reporter Ben Steverman notes that half a million Americans filed jobless claims recently.

Steverman points out that the market rally may lead to a psychological bump, which would increase spending. My concern is that we haven't nearly figured out where we fit into the global economy. Something that can't be compensated for by the Goldman gaming device.

Sales of existing homes rose 3.6% in June, to an annual rate of 4.89 million, the National Association of Realtors reports. This is the third consecutive monthly gain. Moreover, sales of single-family existing homes rose 2.4% in the month, to an annual rate of 4.32 million, which is also a third monthly rise. “The small and sustained increase in sales of existing homes is noteworthy,” says Northern Trust economist Asha G. Bangalore in her in Daily Global Commentary for July 23.