This study examines how the COVID-19 fear-uncertainty, entrepreneurship finance, and firms’ environmental-performance are linked and how novel technology adoption like BDA moderates this relationship. PLS-SEM was used to test and assess hypotheses using a questionnaire of 401 Chinese SMEs managers. The results demonstrate that COVID-19 fear-uncertainty boosts entrepreneurship finance. BDA also moderates the COVID-19 fear-uncertainty-entrepreneurship finance relationship. Likewise, entrepreneurship finance positively affects firms’ environmental performance. Also, entrepreneurship finance significantly mediates the correlation between the fear-uncertainty of COVID-19 and firms’ environmental performance.