Impact of COVID-19 Stimulus Packages on Small and Medium Enterprises (SMEs)

The economic recovery from the COVID-19 crisis in Latin America hinges on the survival of SMEs, which employ a large fraction of the region’s workforce. Governments are responding with large economic stimulus packages, including liquidity or methods to prop up demand for SMEs. In this research, we track the economic impact of COVID-19 evaluating the policies that reduce the spread of the virus and provide financial support to SMEs and households throughout the region, as well as we experimentally evaluate the impact of those programs on SME profits, survival, and employment using financial institutions data.