[r00fus]

Clearly high interest rates in the 80s didn't prevent banks from making loans. Lets talk about the inverse of of what you're suggesting - perhaps the lack of ROI on loans is preventing banks from doing what they're supposed to be doing - lending to small businesses.

[JamesBarney]

How does a low interest rate prevent a bank from making a loan to a small business?

A low interest rate is not a federally mandated cap on interest it is an increase in supply which drives down the cost. Which should increase ROI.