Abstract: The petty security loans policy is an important part of the supporting employment policy. Since its full implementation in 2002, it has made great achievements in aspect of promoting employment. Relative data shows that from 2002 through 2014, the Chinese government issued petty security loans worthy of 500 billion RMB, causing a boost in employment and huge social capital inflows to start-ups. As a result, employment rate increased and employment structure got improved. In the meanwhile, payoff ratio rises year by year, which benefits the recycling usage of collateral fund and sustainable development of policy evolvement. However, it still faces a lot of challenges for the expansion of petty security loans because of social and economic disparity and unreasonable government regulations. This paper suggests more financial support to impoverished areas, lower entry level, extension of applications of financial subsidy, and increased flexibility of credit lines. The development and achievement of petty security loans provide valuable insights for improving other employment supporting policies.