Answers vary. Simone Lee, owner of Calgary's Pages on Kensington bookstore, quips that the only money she's been offered in months came in the form of "an email from Nigeria offering me $700,000."

On a more serious note, Tina Kremmidas, chief economist for the Canadian Chamber of Commerce, says that "Many companies in a wide range of industries continue to face difficulty accessing credit. Some have seen their credit facility scaled back and/or the cost of credit increased - despite the fact that credit conditions in Canada remain much healthier than in other major economies."

However, explains Kremmidas, "Monetary easing by the Bank of Canada has resulted in a significant reduction in short-term lending rates. Meanwhile, longer-term credit spreads (as measured by the difference between short-term lending rates and the expected overnight rate) remain higher than normal, especially for lower-quality, more risky, borrowers."

Ted Mallett, vice-president of research and chief economist for the Canadian Federation of Independent Business, says he doesn't think there actually is a black and white answer as to whether the credit crisis for small businesses is easing.

"Some CFIB members are reporting that the banks have passed on some of the rate reductions from the central bank. So for those with access credit, the cost of financing has declined," says Mallett.

Conversely, he adds, "about 10 to 15 per cent of CFIB members are telling us they're [resorting to] specialty finance companies after being unsuccessful at the major banks, and are now paying six points above prime.

"Yes, that's expensive," says Mallett, "but it's better than what happened during the 1990 recession, when financial institutions simply cut back on financing altogether because they regarded it as too risky for the economic climate."

Are banks trying harder to help small businesses during the current recession?

Speaking for TD Canada Trust and Small Business Banking, Erin Baldwin says yes. "Overall, our lending volumes continue to be above where we were last year, and this includes lending to small business, which has gone up year over year. We continue to lend to creditworthy customers, and have ramped up our efforts to reach out to small business banking customers to see how we can help."

Here, from a variety of financial experts, are some tips for small businesses to consider when trying to access or increase credit, or negotiate better terms on existing credit:

• Shop around for the bank or other lending institution that's right for you, remembering that even amid a recession, lenders are competing for your business.
• Treat the lender you choose as your partner and get to know its players because good relationships are critical to ongoing success.
• Don't act too intimidated to negotiate more advantageous terms.
• Establish and maintain your financial credibility, including sharing information regularly and being forthcoming about negative elements. Supply not only hard numbers about your company's financial performance, but also realistic projections about future expectations.
• Develop convincing arguments about not only why your company needs capital, but also what's in it for the lender who says yes.
• Consider lenders other than the big banks, such as online banks, credit unions and even "angel" investors who, unlike venture capitalists, invest their own money and don't turn their noses up at non-millionaires. (Check out www.angelinvestor.ca.)
• Try for a "character reference" from your long-time personal banker, who might be willing to introduce you to a responsive business lender.
• Routinely review your credit reports to make sure no damaging mistakes have crept in.
• Check with your professional organization (if any) to see if they've gone to bat on your behalf. Bookstore owner Lee, for example, is currently considering whether to accept an offer the Canadian Booksellers Association recently negotiated with the Retail Council of Canada to significantly reduce her merchant fees on credit and debit sales by doing business with another provider.
• Don't overlook the many governmental programs designed to help small businesses. These are often offered in the form of local Canadian Community Loan Funds.
• And finally, don't wait until you're nearly out of cash to approach a lender.