China's $72B boost: Big help for small businesses
China just rolled out a huge 500 billion yuan ($72 billion) loan guarantee plan to give micro, small, and medium-sized businesses a real shot in the arm.
Over the next two years, this fund will help companies get easier access to loans for everything from upgrading factories to covering daily expenses—basically making it less risky for banks to say yes.
What's in it for businesses?
The program covers up to 80% of loan risks, so banks can lend more confidently.
Subsidy and eligibility caps vary — for example, SME interest-subsidy eligibility can reach 50 million yuan per borrower, and service-sector subsidy maximums were raised from 1 million to 10 million yuan.
There are also fresh subsidies—like interest discounts on certain loans—and special deals aimed at digital, green, and retail sectors.
Even personal loans and credit card installments are included through 2026.
Why does this matter?
China's hoping this move will make life easier for private companies struggling with tight credit and slow demand.
By encouraging banks to step up lending, the government wants to keep these businesses growing—and keep the economy moving forward.