Liquidity Loans as an Element of Support for the SME Sector during the COVID-19 Pandemic in the Area of Central Pomerania

Abstract

Purpose: The aim of the article is to present the significance and the forms of state aid addressed to the SME sector in the time of economic crisis caused by an epidemic shock. Design/Methodology/Approach: The article analyzes the conditions for supporting micro, small and medium-sized enterprises in the form of liquidity loans addressed to enterprises in Poland. Moreover, the size and structure of 46 loans granted to entrepreneurs from the area of Central Pomerania (Poland) were examined. Descriptive statistics measures, the Pearson correlation coefficient and linear regression measures were used to analyze the support granted in the form of liquidity loans. Findings: The conducted analyses indicate that liquidity loans are a very attractive form of supporting entrepreneurship in the conditions of a pandemic. This form of support is mainly used by the smallest enterprises (micro-enterprises) and there is a certain risk that this form of aid will also be of interest to companies that have not suffered too much from the crisis caused by the pandemic. Practical Implications: The results indicate that the value of the granted liquidity loans is small, therefore they should only provide emergency aid in the initial stage of the epidemic. Originality/Value: The research findings can be used by institutions responsible for distrybuting loans and by the European Union Member States for designing the distribution of funds in order to support business after the end of the epidemic.