U.S. banks eased standards and terms on loans to businesses as commercial lending led a credit thaw, according to a Federal Reserve survey.

“Domestic banks, on balance, reported having eased their lending standards and having experienced stronger demand in several loan categories over the past three months,” the central bank said in its quarterly survey of senior loan officers released in Washington today. The fraction of banks easing standards for business loans was described as “relatively large.”

The Federal Open Market Committee reviewed the report at a meeting last week before reiterating that economic growth will probably “proceed at a moderate pace” even against a headwind from government spending cuts. The FOMC signaled it may step up monthly bond buying beyond $85 billion if the need arises to overcome a slump in growth or a decline in inflation.