China’s central bank on Wednesday rolled out a targeted policy tool to spur lending to small and private firms, in the latest step to support the slowing economy amid a trade dispute with the United States.

The targeted medium-term lending facility (TMLF) will provide “long-term stable source of funding for financial institutions based on growth of their loans for small and private firms”, the central bank said on its website.

Large commercial banks, joint-stock banks and big city commercial banks showing strong support for the real economy and meeting macro-prudential requirements will be allowed to apply for the lending facility, the central bank said.

The TMLF will mature in one year but banks will be allowed to roll it over for two more years, the central bank said.

The one-year interest rate on the TMLF will be 3.15 percent, 15 basis points lower than the rate on the medium-term lending facility (MLF), the central bank said.

The People’s Bank of China will also boost relending and rediscount quotas by 100 billion yuan ($14.50 billion) to help the financing needs of small enterprises, part of measures to strengthen private sector support.

The latest quotas are in addition to another 300 billion yuan that were issued earlier this year, the central bank said on its website www.pbc.gov.cn.

The government has been providing support for small firms and private enterprises, which are vital for economic growth and employment as headwinds rise due to trade frictions with the United States.

The central bank said it will continue to implement a”prudent and neutral” monetary policy to help ensure reasonably ample liquidity and said it will implement targeted policy measures in a more precise and effective way.($1 = 6.8975 yuan)