loan guarantees
Secured debt promises
Loan guarantees are commitments by a third party—typically a government or institution—to repay a loan if the borrower defaults.
They reduce risk for lenders, making credit available to borrowers who might otherwise be denied: Federal loan guarantees helped small businesses survive the downturn.
The guarantor doesn't provide money upfront but stands behind the debt.
- small business loansCredit for modest enterprises
- credit enhancementMethod to reduce investment risk
- borrowersThose receiving loans
- grantsAwarded funds for purposes
- farm loansFinancing for agricultural operations
risk · collateral · guarantors · backstop · insurance · co-signer · lenders · subsidies · underwriting · housing loans · debt forgiveness · Freddie Mac · FHA loans · moral hazard · skin in the game · VA loans · government-backed loans · Fannie Mae
- economic policymonetary policy, tax policy, fiscal discipline, fiscal stimulus, fiscal restraint
- Bailoutsbailout, bank bailout, bank bailouts, rescue package, rescue fund
- economic developmenteconomic development, jobs, rural development, urbanization, job creation
- government spendinggovernment spending, federal budget, expenditures, allocations, military spending
- contingent liabilitiesguarantees, warranties, indemnities, letters of credit, warranty claims
- development financedevelopment projects, infrastructure funding, grant funding, World Bank, IMF
loan guaranteescash transfers
Money given to recipients
direct loans · direct lending · equity investment · budget allocations