Sunny27- I agree with you. Banks are more receptive to loaning when their business risk is lowered. This is why many new business owners take out home equity lines against their homes.
The bank feels that these types of loans lower their business risk because know if the prospective business owner defaults on his or her loan, the bank can place a lien on the property.
So in the bank’s eyes the business owner has a higher stake in the game and will less likely default.