Empirical analysis is conducted on the relationship between the monetary supply,financial institutions' loan and SMEs' loan by using the unit root test,co-integration test and Granger causality test based on monthly data from January of 2004 to September of 2008.This paper holds that China has credit transmission channel.But through this channel,the influence of the monetary policy on the SMEs' loan is limited.So we consider that it is helpful to seek the breakthrough of the SMEs' finance by establishing lo...