Since the pilot work was carried out in Shandong province in 2008，the microfinance industry in the province has developed rapidly and formed a quite large-scale. Experienced booming development at the beginning of the pilot project，the number of small loan companies in Shandong province has gradually become stable in the past two years. Overall，Although the size of microfinance companies is large in Shandong，the industry is still facing some problems such as increased risk of the business，bad loan ratios surge，business to carry out is harder，uneven geographical distribution of the institutions and imperfect industry information disclosure，etc. This report is mainly analyzes the current problems in the small loan companies in Shandong and make recommendations to promote the industry development healthy.