On August 26, it was reported that the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, and Postal Savings Bank of China have implemented the policy notice jointly issued by the Ministry of Finance and other departments regarding loan interest subsidies for small and micro enterprises and service industry operators. The optimized subsidy policy, part of the broader effort to coordinate fiscal and financial measures to boost domestic demand, will take effect on August 1, 2026.

Under the updated subsidy framework, the annual loan ceiling eligible for interest subsidies at a single institution for small and micro enterprises has been raised from 50 million yuan to 75 million yuan per enterprise. Meanwhile, for service industry operators, the corresponding annual cap at one institution has been increased from 10 million yuan to 20 million yuan per operator. The revised policy also expands coverage to include newly issued working capital loans for qualifying private small and micro enterprises, extending the subsidy benefits to this segment for the first time.

For eligible working capital loans disbursed to private small and micro enterprises on or after August 1, 2026, the central government will provide an annual interest subsidy of 1 percentage point on the loan principal, with the subsidy period not exceeding two years. Banks will submit qualified loans for both small and micro enterprise subsidies and service industry operator subsidies to the relevant government departments for review. Once approved, customers will be notified of the specific subsidy details via text message or other designated channels.

For loans that were already processed between August 1 and the date of the banks' announcements, businesses need not take any action. Banks will automatically forward all eligible loans to government departments for review, ensuring a seamless process without requiring any steps from the enterprise. Notably, the banks will not engage any third-party agencies or intermediaries in handling these subsidy applications, and no fees will be charged at any stage. Customers are strongly advised to remain vigilant against unsolicited calls, messages, or other communications from unofficial sources, as these could be fraudulent attempts, and to safeguard their property and personal information at all times.