On February 5th, the federal financial regulatory agencies and the Conference of State Bank Supervisors issued a statement on prudent lending to creditworthy small business borrowers. Financial institutions that engage in prudent small business lending after performing a comprehensive review of a borrower's financial condition will not be subject to supervisory criticism for small business loans made on that basis. According to the statement, financial institutions should understand the long-term viability of the borrower's business and focus on the strength of a borrower's business plan to manage risk, rather than using portfolio management models that rely primarily on general inputs. Joint Press Release.