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Loan guarantee
A loan guarantee is a promise by a government to
assume a private debt obligation if the borrower defaults. Most loan guarantee
programs are established to correct perceived market failures by which small
borrowers, regardless of creditworthiness, lack access to the credit resources
available to large borrowers.
Loan guarantees can also be extended to large borrowers for political reasons.
For example, Chrysler Corporation, one of the "big three" US automobile
manufacturers, obtained a loan guarantee in 1979 amid lobbying by labour
interests
Programs and agencies
United Kingdom
Small Firms Loan Guarantee
United States
Fannie Mae
Export-Import Bank
Federal Family Education Loan Program
Freddie Mac
Government National Mortgage Association
Small Business Administration
VA loan.
LP1, LP2, LP3, LP4, LP5, LP6, LP7, LP8, LP9, LP10, links
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