loan guarantee
Borrowed money promise
A loan guarantee is a promise by a third party—typically a government agency or parent company—to repay a borrower's debt if the borrower defaults.
The guarantee reduces risk for lenders, allowing borrowers to obtain financing they might not otherwise qualify for: The Small Business Administration offers loan guarantees to help entrepreneurs secure capital.
Federal loan guarantees helped the company avoid bankruptcy.
- credit enhancementMethod to reduce investment risk
- borrowerOne who takes temporarily
- defaultPreset standard option
- bondBinding tie or connection
- co-signerJoint debt guarantor
backstop · financial backing · debt · student debt · contract · indemnity · guarantor · skin in the game · risk sharing · deficiency judgment · surety bond · banker · interest · bankruptcy · promissory note · credit line · credit risk · foreclosure
- economic policymonetary policy, tax policy, fiscal discipline, fiscal stimulus, fiscal restraint
- lendingborrower, approval, lenders, credit, interest
- Bailoutsbailout, bank bailout, bank bailouts, rescue package, rescue fund
- guaranteeswarranty, guaranty, pledge, oath, promise
- veteran benefitsVA benefits, veteran benefits, GI Bill, disability benefits, VA mortgage
- subsidiesfarm subsidies, subsidy, agricultural subsidies, crop subsidies, energy subsidies
loan guaranteegift
Item given freely
grant · free money · donation · charitable contribution · subsidy
loan, guarantee, lender, lending, loaned, loans, loaning, loaner, loanee