State-owned banks increase lending to financially weak "zombie'' firms before elections. Using loan-level data over 76 elections across 36 democracies, I show that state-owned banks initiate new lending relationships with zombie firms to preserve jobs and improve electoral outcomes. These effects are most pronounced before elections and among labor-intensive firms. By comparing with lending to the same borrower industry and year by non-state-controlled banks from the same country, I ensure that differences in country fundamentals or changes in credit demand cannot explain the results. Post-election, this lending reduces aggregate TFP and output. These effects are strongest where unemployment and political control are high, and are driven by managerial career concerns.