The impact of the COVID-19 pandemic and government assistance programs on SMEs in the state of California
Date
2022-12-15
DOI
Authors
Xia, Harry
Milevoj, Emil
Goncalves, Marcus
Version
Accepted manuscript
OA Version
Citation
H. Xia, E. Milevoj, M. Goncalves. 2022. "The Impact of the COVID-19 Pandemic and Government Assistance Programs on SMEs in the State of California" In: COVID-19: Implications for the Economy. The WSB University in Poznan Press, pp.32-58.
Abstract
The international trade in goods showed remarkable resilience and set a new record in Q3 2021 despite the impact of the COVID-19 pandemic. Using primary data from California, this study focuses on the perceived effectiveness of a critical driving force, the government assistance programs, including traditional export assistance programs (EAPs) and COVID-19 economic assistance programs (CEAPs), by the small and medium-sized enterprises (SMEs) engaged in international trade before and during the pandemic. Results from the SMEs survey and data gathered from semi-structured interviews with EAP representatives and community bankers indicate that certain traditional EAPs were perceived as less effective during the pandemic, while SMEs more actively sought specific CEAPs, especially the Paycheck Protection Program and Economic Injury Disaster Loan. Furthermore, community banks played a vital role as a bridging agent in government assistance programs which could be extended and enhanced in the post-pandemic era.