Debt and rent moratoria or deferrals, potentially subsidized by taxpayers, are among a range of policies that could help small businesses avoid unnecessary failures because of the COVID-19 recession, suggests a paper to be discussed at the Brookings Papers on Economic Activity (BPEA) conference on September 24.
Restructuring subsidies and payment deferrals are options that are especially suited for small businesses and should be targeted at them, write Robin Greenwood of Harvard University, Ben Iverson of Brigham Young University, and David Thesmar of the Massachusetts Institute of Technology. But they note that just under a half a million establishments close each year even in ordinary times and caution, these programs must be careful…
Read the full article at: https://www.brookings.edu/bpea-articles/sizing-up-corporate-restructuring-in-the-covid-crisis/