To mitigate the shocks caused by the pandemic-related restrictions, many governments have implemented extensive enterprise support measures, including the provision of government guaranteed loans to businesses that faced a sharp decline in revenues. In Russia, the introduction of loan guarantee programs has allowed many businesses which never obtained bank loans previously to apply for them under new circumstances. This led to a sharp increase in the number of small loans. At the same time, our estimates show that financially vulnerable companies are less likely to receive loans under loan guarantee programs. Our estimates for the Russian economy show that participation in loan guarantee programs has helped firms in industries hardest hit by the COVID-19 crisis better retain sales and employment levels. On the other hand, our results suggest that if loans are obtained by zombie firms or financially vulnerable companies, a positive effect is either absent or weaker than for financially stable enterprises.