A survey by the Federal Reserve finds about one-third of banks have tightened lending standards as a result of losses in the home mortgage market.

At the same time, the number of SBA-guaranteed loans to small businesses has declined 14% compared to the same period a year ago. Administrator Steven Preston said that is another fallout from banks’ tighter credit policies. The biggest drop is in the smaller Express loans.

Senate Small Business Committee Chairman John Kerry, D-MA, plans to introduce legislation to reduce fees on 7(a) loans, SBA’s most popular program. “We’re seeing the mortgage crisis have a ripple effect that’s preventing many small business owners from getting loans they need to create jobs, grow their businesses and spur the economy,” Kerry said. “This is precisely the moment when we need Washington to pick up the slack.”

Rep. Tom Davis, R-VA, federal contractors’ leading champion in Congress, plans to retire at the end of the year.

As chairman of the Oversight and Government Reform Committee, Davis sponsored many of the procurement changes of the past decade. He lost his chairmanship when Democrats won control of the House in 2006.

Davis said he will not seek re-election to an eighth term from his district in the Washington suburbs. The 59-year-old did not rule out a future campaign for office.

This year he backed away from a run for the Senate seat being vacated by John Warner, R-VA. Political analysts said Virginia’s Republican party decided to choose its nominee in a convention rather than a primary, giving more conservative candidates an advantage over the moderate Davis.

In an online chat for washingtonpost.com, he quipped, “All I can say is there are three ways to leave public office, and two of them aren’t very pleasant. I’m glad I’ve opted for the third.”

The Federal Acquisition Regulations Councils have issued a proposed rule to limit the length of contracts awarded noncompetitively under unusual and compelling urgency circumstances. Under the rule, those contracts would be restricted to the minimum period necessary to meet the requirements, and no longer than one year, unless approved by the head of the contracting activity.

The rule is FAR Case 2007-008. Comments are due March 31.

SBA is granting a waiver of the nonmanufacturer rule for Irradiation Apparatus Manufacturing, Computerized axial tomography (CT/CAT) scanners manufacturing; CT/CAT (computerized axial tomography) scanners manufacturing; Fluoroscopes manufacturing; Fluoroscopic X-ray apparatus and tubes manufacturing; Generators, X-ray, manufacturing; Irradiation equipment manufacturing; X-ray generators manufacturing; and X-ray irradiation equipment manufacturing.

The agency says no small business manufacturers are supplying these products to the government.