On Aug 21, 2026 the Ministry of Finance (with the PBOC and financial regulator) announced expanded fiscal interest subsidies, effective Aug 1, 2026. The subsidized-loan ceiling for micro, small and medium enterprises rose from 50 million to 75 million yuan per year, and for service-sector operators from 10 million to 20 million yuan; the personal consumer-loan subsidy cap went from 3,000 to 5,000 yuan. The number of banks handling the subsidies expands from about 100 to roughly 400, at an annual subsidy rate of about 1 percentage point.
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China raises small-business loan interest-subsidy cap to 75m yuan, from Aug 1, 2026
Why this matters for founders
A founder can borrow more working capital at an effectively lower rate by taking eligible loans through any of the ~400 participating banks and claiming the government interest subsidy. Check whether your company qualifies as an MSME or service-sector operator to use the higher 75m/20m yuan subsidized ceilings.
Source: The State Council of the People's Republic of China (gov.cn)
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