Lenders have all but abandoned efforts to tighten credit to entrepreneurs, according to new data from the Federal Reserve. On balance, only 4% of domestic lenders told the central bank in its quarterly survey that they raised their standards for approving small-business loans. That figure is down from 15% in the fourth quarter of 1998.

Even better, only 6% of the banks said they were increasing the markup or "spread" that they charge small businesses over their own cost of funds. That's down from 19% just two months earlier.

When it comes to actual terms buried in fine print, such as collateral and income standards, the banks were somewhat less benign. Overall, 7.4% tightened standards for companies with less than $50 million in sales and 3.7% eased somewhat, with smaller banks pulling hardest on the reins. In particular, banks were cutting the maximum size of credit lines and raising some of the associated costs. And small banks are more likely to be increasing their markup -- and thus your interest rate. They also tended to look less favorably than before on commercial real estate loans.

Want a better deal? You might get one. Among banks that eased their terms, the main reason cited was aggressive competition from rivals.

As for the actual level of interest rates, the Fed report was silent on that matter. That's covered in a separate report, and an update isn't due out for another month. But based on historic norms, Business Week estimates that the average small-business rate is hovering near 9% for loans of up to $100,000 and 8% for loans of up to $1 million.

The Fed survey is a nationwide sample of 54 institutions. Actual rates in your region are likely to vary, based on factors such as competition and, particularly, the financial strength of your company.

To: FINANCE