Abstract Loan troubles that the medium and small business facing are very common during the course of economic development in many countries. They beset the governments, economists and enterprisers for many years. It is not a problem in theory, but a problem in practice which needs active innovation under the instruction of the theory of market economy. In order to resolve the problem, Zhejiang province implements a series of effective measures in latest years. Those measures with significant innovation have high value in theory under previous market system. They can be modeled by the local governments, financial institutions, medium and small businesses and the field of economic theory.
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Received: 22 June 2007
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