from local or national authorities, and if they have not, they are asked about the reasons why.<sup>5</sup> The data set then offers a unique window into the private sector to assess both the need for policy and the availability of public support during the COVID-19 shock.

Given the variation in country samples and timing of the surveys, we follow Apedo-Amah et al. (2020) and introduce different controls in the analysis. Unless stated otherwise, we usually include in the analysis dummies for size, sector (i.e. 10 sectors), country, and the timing of the survey in terms of weeks relative to the peak of the COVID-19 shock.<sup>6</sup> To control for differences in the number of observations in each country sample, we weight our results using the inverse of the number of observations in each country, that is, in the spirit of traditional cross-country analysis, each country has the same weight in our analysis.

# **3. The Supply of and access to policy support**

To respond to the economic downturn caused by the COVID-19 pandemic, countries around the world have enacted a large suite of stabilization and recovery measures. According to the World Bank, governments across the world have implemented 1,607 measures directly aimed at supporting firms in 135 countries. More than three-quarters of these measures are concentrated in three categories: debt finance support, employment cost support, and tax support.<sup>7</sup> Debt finance support has been the most common, accounting for more than a third of all policy measures adopted. Within this category, new lending under concessional terms accounts for 43%, followed by the deferral, restructuring or rescheduling of payments (26%) and credit guarantees (13%). Employment support constitutes roughly one-quarter of all measures that have been announced, with wage subsidies (38%) and support to self-employed individuals (26%) being the most common within this group. The third most common group of policy response measures is tax relief, representing one-fifth of all measures.<sup>8</sup> Importantly, the type of policy responses varies systematically across countries. Low-income countries tend to use a less diversified set of interventions, with debt finance interventions accounting for almost half of all measures, but rely less heavily on employment support. High-income countries rely less heavily on debt finance or tax relief (31% and 17% of all measures, respectively), but use employment support measures (32%) more frequently. More direct forms of income transfers, i.e. wage subsidies and direct monetary transfers, are more common among firms in richer countries. Such differences suggest that variations in government administrative capabilities, fiscal space, the

> 5The questions read: _1. What would be the most needed policies to support this business over the COVID-19 crisis? (Choose up to three)_ Menu of options: monetary transfers, deferral of payments, access to finance, support with tax obligations, wage subsidies, and others; _2. Since the outbreak of COVID-19, has this establishment received any national or local government measures issued in response to the crisis?_ Menu of options: Yes, No; _3. Did any of these measures involve any of the following? (Choose all that apply)_ Menu of options: monetary transfers, deferral of payments, access to finance, support with tax obligations, wage subsidies, and others; _4. What of the following options best describe the reason why this establishment did not receive any national or local government measures issued in response to the crisis?_ Menu of options: I was not aware; Too difficult to apply; I am not eligible; I have applied but not received it; Other.

> 6This is measured using country-level Google Mobility Data.

> 7 See World Bank, _Map of SME-Support Measures in Response to COVID-19_ . Data and visualizations available here: https://bit.ly/2SelF96. Policy responses are classified in eight different categories: business advice; business climate; business cost support; debt finance support; demand support measures; employment cost support; other finance support; and tax relief.

> 8Primarily through rate reductions, credits, waivers, and/or deferrals of VAT, payroll, social security, and land taxes (58% of all tax support measures); similar benefits on corporate taxes have been used to a lesser degree (30%).

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