Yale School of Management

Posts by SME

Governments Provide SMEs with Relief for Non-Wage Fixed Costs

June 8, 2020
As countries adopt measures to respond to the ongoing COVID-19 crisis, many are providing support to businesses for fixed costs. Fixed costs are those that do not change with the amount of product or services a firm provides. Though a small business may be able to decrease variable costs in response to diminished demand or a government-mandated suspension of operations, small and medium-sized enterprises (SMEs) still face the ongoing burden of fixed costs. Continue reading “Governments Provide SMEs with Relief for Non-Wage Fixed Costs”

Poland’s Financial Shield Provides Support to Businesses

June 2, 2020
In response to the COVID-19 pandemic, on March 31, the Polish government announced its “Anti-Crisis Shield,” which includes the “Financial Shield” to support microenterprises, small and medium-sized enterprises, and large companies. The Financial Shield has PLN 100 billion (USD 24.8 billion or approximately 4.5% of 2019 GDP) in total funding. The Polish Development Fund (PFR), a state-owned financial group, is responsible for the administration of the Financial Shield. Continue reading “Poland’s Financial Shield Provides Support to Businesses”

US Businesses Navigate Multiple Government Support Programs

May 12, 2020
In response to the COVID-19 pandemic, the United States has adopted multiple programs providing support to businesses, specifically targeting job retention, while at the same time expanding unemployment insurance benefits and eligibility. Programs to support businesses vary across types of benefit and eligibility criteria. This post summarizes government support options available to businesses in the United States and some potential considerations for employers and employees. Continue reading “US Businesses Navigate Multiple Government Support Programs ”

Governments Support Businesses through Equity Investments

May 11, 2020
In response to the economic shutdown caused by COVID-19, many countries have announced plans to take equity stakes in private businesses. Germany and Poland have announced large-scale programs focused on relatively large companies that the government determines are systemically important. Other countries, like the U.S., have announced equity programs that target critical industries, which we cover in a separate survey. Several countries -- including the U.K., France, and Germany -- have also announced much smaller programs dedicating small sums to startups or small and medium-sized enterprises, as part of broader efforts to support small businesses.  Continue reading “Governments Support Businesses through Equity Investments”

FHFA Allows Federal Home Loan Banks to Take PPP Loans as Collateral

May 8, 2020
On April 23, the FHFA announced that Federal Home Loan Banks (FHLBs) could take Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration as collateral for their advances providing some financial institutions two channels through which to finance such loans. Continue reading “FHFA Allows Federal Home Loan Banks to Take PPP Loans as Collateral”