Abstract

During the COVID-19 crisis, the Italian Government implemented measures to facilitate access to guaranteed loans, strengthening the role of the Fondo Centrale di Garanzia (FCG) in support of SMEs. This study focuses on the effects of these policies, specifically in Tuscany, which saw changes to regional rules and a greater increase in FCG operations compared to other regions. Using data from the credits register and company information, we analyse the characteristics of firms that benefited from FCG loans and study changes in the structure of the credit market as many companies entered the market for the first time following the relaxation of the FCG access rules. Additionally, an econometric analysis reveals the significance of pre-existing banking relationships in obtaining government backed loans.