BABYLON - The Federal Reserve released a survey on Monday of senior bank lending officials that says about one third of the banks in the U.S. are now lending to small businesses at lower rates.

Some Long Island business owners, however, say they aren't seeing the effects.

Jon Taylor, president of the Babylon Village Chamber of Commerce and owner of Village Art and Frame Gallery, tells News 12 Long Island he hasn't seen an ease on lending in the area. Taylor says that with the loosening of credit, suppliers and their ability to borrow money and finance inventory will eventually find its way down to small business owners.

Taylor says he has seen a bit of an improvement in consumer traffic at his store since Hurricane Sandy, but business is still down about 30 percent.