Supporting small firms through recessions and recoveries

We use variation in the access to a government credit certification program estimate financial and real effects of supporting small firms. This was first implemented during global crisis, but has remained active ever since, allowing us analyze its both recessions recoveries. Eligible firms have loan guarantees quality certification. using multidimensional regression discontinuity design. find that eligible borrow more at lower rates than non-eligible firms, them increase investment employment crises. Industry-level analysis shows reduced productivity heterogeneity exposed industries, which is consistent with improved allocation. However, when economy recovering are less pronounced centered on component. The cost-per-job recovery period half one estimated for crisis (5784€ 11,788€, respectively).