Small- and mid-cap stocks (SMIDs) are currently more vulnerable to the COVID shock than markets have already priced in. A capital chasm is set to emerge as the unprecedented conditions have left many businesses in need of re-capitalisation that institutions and other pools of capital have insufficient resources to deliver. This means the Bank of England, other central banks and governments should focus significantly more of their ‘firepower’ on the sector to head-off economic calamity.