A much debated issue in the discussion about COVID-19 state aid to firms is the extent to which these measures keep non-viable firms afloat. What are the characteristics of firms that receive aid and are they viable in the long term? Based on a survey of 1,151 firms in the Netherlands, mainly SMEs, we find that on average, government support goes to better-managed firms and to those with low turnover expectations and high turnover uncertainty. This suggests that COVID-19 state aid tends to go to firms that are most in need of it now and are more likely to be viable in the long term, as indicated by the quality of their management practices. •Many firms were confronted with substantial turnover decreases and high turnover uncertainty during the COVID-19 pandemic.•The COVID-19 pandemic and its ensuing restrictions led to rapid and massive state aid to firms in many countries.•A key policy question is whether COVID-19 state aid reaches the right firms: those that need it most and are also viable.•We approximate the viability of firms with the quality of their management practices.•Dutch COVID-19 state aid went to better-managed firms and firms with low turnover expectations and high turnover uncertainty.