However, the People's Bank of China raised the one-year benchmark interest rate by 0.25 percentage points and adjusted the one-year loan rate to 6.06 percent on Feb. 8.

That means that the bank loan rate for a month is about 0.5 percent, while the borrowing cost from pawnshops is nearly six times higher.

"It's bad for small businesses, because on one hand, they need money very much and on the other hand, they have to pay more," Wang said.

The size of new loans from China's four major state-owned banks is set at about 2.85 trillion yuan for 2011. The nation's new loans, of which 35 to 40 percent may come from the "big four," are between 7.1 to 8.1 trillion yuan, the China Business News reported.

According to Century Weekly, the loan target for the Industrial and Commercial Bank of China is 880 billion yuan. The target for China Construction Bank is 750 billion yuan. Agriculture Bank of China is aiming for 620 billion yuan and Bank of China's 600 billion yuan. The central bank has approved all of those targets.

As a representative of SMEs, Wang hopes the central government will adopt favorable loan policies for smaller companies. He pointed out that small- and medium-sized businesses create 75 percent of China's jobs.

Wang proposed that during the 12th Five-year Plan period (2011-15), the country can encourage the development of small- and medium-sized banks to help small businesses.

"Those banks are small, but they can have more flexible loan policies," Wang said. "If small sectors can work together, we will have a little Titan."

SMEs refer to enterprises whose annual business revenue is below 300 million yuan, but in the retail and accommodation industry, the maximum annual business revenue is 150 million yuan, according to the China Banking Regulatory Commission.