Guarantee Programs

Guarantee programs are initiatives where a third party, often the government or a financial institution, assures repayment or support if a borrower defaults on a loan. They reduce the risk for lenders, making it easier for individuals or businesses to access financing. For example, a government guarantee might back a small business loan, encouraging banks to lend by lowering their potential losses. These programs help expand access to funding, promote economic growth, and strengthen financial stability by providing a safety net for both lenders and borrowers.