The Bank of Japan has announced a credit line of 500 billion yen ($US6.2 billion) to help small businesses.
Banks will able to use this facility to extend loans to smaller firms without using real estate as collateral.
The BBC reports that business is having a tough time since the earthquake and tsunami on 11 March. Many factories have suspended or curbed their production.
On Monday, the cabinet office reported that core machinery orders in Japan fell 3.3% in April, compared with the previous month.
The BoJ also kept interest rates unchanged, at between zero and 0.1%.
