It is proving to be increasingly difficult to find reliable sources for both commercial real estate financing and working capital loans. One of the factors contributing to problems with obtaining commercial mortgages has been a downward spiral in commercial property values. Another issue complicating the business lending picture has been a poor economy which frequently translates to decreases in business operating income. These two factors can essentially result in a vicious circle that creates further declines in commercial real estate values because most appraisals rely on an income approach. Compounding the problem has been a general reluctance by most banks to return to previous levels of activity for making small business loans. While there are practical solutions to this problematic small business lending environment, business owners are still likely to be confused and frustrated by the relative ineffectiveness of most banks in providing working capital business mortgages. As one business financing expert has stated, banks are the problem rather than the solution.