China adds 1-point interest subsidy on new small-business working-capital loans

On Aug 27, 2026, Xinhua reported that China's six major state-owned banks plus roughly 400 total institutions (21 nationwide banks and qualified local lenders) began implementing an expanded loan interest-subsidy policy effective August 1, 2026: newly issued working-capital loans to small and micro enterprises now qualify for a central-government subsidy of 1 percentage point for up to two years. Previously the subsidy covered only fixed-asset loans, so the expansion newly targets payroll, procurement, and day-to-day cash-flow borrowing.