Purpose

Many governments are taking measures in support of small and medium-sized enterprises (SMEs) to mitigate the economic impact of the COVID-19 outbreak. This paper presents a theoretical model for evaluating various government measures, including insurance for bank loans, interest rate subsidy, bridge loans and relief of tax burdens.

Design/methodology/approach

This paper distinguishes a firm's intrinsic value and book value, where a firm can lose its intrinsic value when it encounters cash-flow crunch. Wang transform is applied to (1) calculating the appropriate level of interest rate subsidy payable to incentivize banks to issue more loans to SMEs and to extend the loan maturity of current debt to the SMEs, (2) describing the frailty distribution for SMEs and (3) defining banks' underwriting capability and overlap index in risk selection.

Findings

Government support for SMEs can be in the form of an appropriate level of interest rate subsidy payable to incentivize banks to issue more loans to SMEs and to extend the loan maturity of current debt to the SMEs.

Research limitations/implications

More available data on bank loans would have helped strengthen the empirical studies.

Practical implications

This paper makes policy recommendations of establishing policy-oriented banks or investment funds dedicated to supporting SMEs, developing risk indices for SMEs to facilitate refined risk underwriting, providing SMEs with long-term tax relief and early-stage equity-type investments.

Social implications

The model highlights the importance of providing bridge loans to SMEs during the COVID-19 disruption to prevent massive business closures.

Originality/value

This paper provides an analytical framework using Wang transform for analyzing the most effective form of government support for SMEs.

中文翻译：

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应对 COVID-19 的政府对中小企业的支持：使用 Wang 变换的理论模型

目的

许多政府正在采取措施支持中小企业 (SME)，以减轻 COVID-19 爆发的经济影响。本文提出了一个评估各种政府措施的理论模型，包括银行贷款保险、利率补贴、过桥贷款和税收负担减轻。

设计/方法/方法

本文区分了公司的内在价值和账面价值，当公司遇到现金流紧缩时，可能会失去其内在价值。Wang变换应用于（1）计算应支付的利率补贴的适当水平，以激励银行向中小企业发放更多贷款并延长对中小企业的流动债务的贷款期限，（2）描述中小企业的脆弱性分布和（ 3）在风险选择中定义银行的承保能力和重叠指数。

发现

政府对中小企业的支持可以采取适当水平的应付利率补贴的形式，以激励银行向中小企业发放更多贷款，并延长对中小企业现有债务的贷款期限。

研究限制/影响

更多有关银行贷款的可用数据将有助于加强实证研究。

实际影响

本文提出设立专门支持中小企业的政策性银行或投资基金，制定中小企业风险指数以促进精细化风险承保，为中小企业提供长期税收减免和早期股权投资等政策建议。

社会影响

该模型强调了在 COVID-19 中断期间向中小企业提供过桥贷款以防止大规模企业倒闭的重要性。

原创性/价值

本文提供了一个使用王变换的分析框架来分析政府支持中小企业的最有效形式。