A lot has been written about the limited access to credit for small businesses.  This particular move is intended to free up capital for banks to make more loans. 

Yet Matt Bandyk of the US News and World Report pointed out that this may only make a marginal difference in the small business credit crunch because SBA lending is such a small piece of the market.

According to the February Discover Small Business Watch Survey, 90 percent of small-business owners have never applied for an SBA loan. Even if SBA loans became easier to get, 58 percent said they still wouldn’t be interested in SBA loans.

If small businesses aren’t looking for SBA loans, maybe the government should consider how to make SBA loans more attractive to the borrower.  If not, freeing up available capital may not be enough.