# Appendix Table 7

Probability of Firms Using Public Programs: Thresholds between 1% and 4%

|||Credit Progra<br>|m<br>|Employment Program<br>|Both Programs<br>|
|---|---|---|---|---|---|
||(1)|(2)|(3)|(4)|(5)|
||Use|Applications|Approvals|Use|Use|
|Risk (1%)|0.352|0.556|-0.264|-0.016|0.051|
||(0.034)|(0.035)|(0.022)|(0.024)|(0.018)|
|Risk (2%)|0.343|0.547|-0.264|-0.020|0.047|
||(0.034)|(0.035)|(0.022)|(0.024)|(0.018)|
|Risk (3%)|0.336|0.539|-0.265|-0.022|0.046|
||(0.034)|(0.035)|(0.022)|(0.024)|(0.018)|
|Risk (4%)|0.330|0.533|-0.265|-0.024|0.043|
||(0.034)|(0.035)|(0.022)|(0.024)|(0.018)|
|Increase in Sales Dummy (1%)|0.260|0.244|0.022|0.069|0.085|
||(0.009)|(0.008)|(0.007)|(0.008)|(0.007)|
|Increase in Sales Dummy (2%)|0.195|0.187|0.014|0.053|0.064|
||(0.008)|(0.008)|(0.006)|(0.007)|(0.006)|
|Increase in Sales Dummy (3%)|0.164|0.163|0.009|0.046|0.054|
||(0.008)|(0.007)|(0.006)|(0.006)|(0.006)|
|Increase in Sales Dummy (4%)|0.148|0.149|0.007|0.037|0.044|
||(0.007)|(0.006)|(0.006)|(0.006)|(0.005)|
|Decrease in Sales Dummy (1%)|0.255|0.241|0.021|0.141|0.130|
||(0.009)|(0.008)|(0.007)|(0.008)|(0.007)|
|Decrease in Sales Dummy (2%)|0.193|0.190|0.014|0.112|0.102|
||(0.010)|(0.008)|(0.008)|(0.009)|(0.009)|
|Decrease in Sales Dummy (3%)|0.163|0.165|0.009|0.105|0.092|
||(0.007)|(0.006)|(0.006)|(0.006)|(0.005)|
|Decrease in Sales Dummy (4%)|0.147|0.152|0.007|0.097|0.083|
||(0.007)|(0.006)|(0.005)|(0.006)|(0.005)|
|Number of Firms|62,894|62,859|36,609|62,128|61,446|
|Industry FE|Yes|Yes|Yes|Yes|Yes|
|Municipality FE|Yes|Yes|Yes|Yes|Yes|

This table reports probit estimations of the probability of a firm with a previous loan using a government program on a set of firm-level characteristics, and using alternative thresholds for sales growth, defined in parentheses. Firms with previous loans are those that either have bank credit outstanding in December 2019 or receive a bank loan over the period 2012–2019. In Column 1, the dependent variable is equal to one if the firm participates in the credit program and zero otherwise, in Column 2, the dependent variable is equal to one if the firm applies to the program and zero otherwise, in Column 3 the dependent variable is equal to one if the firm’s loan application is approved and zero otherwise, in Column 4 is equal to one if the firm participates in the employment program, in Column 5 is equal to one if the firm participates in both programs, and is zero otherwise. Risk corresponds to the fitted values of the regression specification reported in Table 1, Column 8. Increase (decrease) in sales dummy is equal to one if sales growth is greater (lower) than or equal to the threshold, and zero if sales growth is between the threshold defined. Use credit program and employment program are dummy variables equal to one for program participation and is zero otherwise. Use both programs is a dummy variable equal to one for credit and employment program participation, and is zero otherwise. The table uses the firms with previous loans of the credit program eligible firms sample. Some observations are dropped when estimating the model with fixed effects. Standard errors, shown in parentheses, are clustered at the industry and municipality level.

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