Yale School of Management

Posts by Credit Guarantee

Countries Continue to Adopt and Update Credit Guarantee Schemes for Small Business Lending

June 29, 2020
In response to the COVID-19 pandemic, many countries quickly announced credit guarantee schemes to support lending to small and medium-sized enterprises (SMEs). Under a credit guarantee scheme, the government fully or partially guarantees the value of a loan to an SME, which minimizes the risk to the lender, incentivizing the lender to provide credit. According to recent data from the World Bank, 41 countries have launched 57 credit guarantee schemes for SMEs this year.  Continue reading “Countries Continue to Adopt and Update Credit Guarantee Schemes for Small Business Lending”

Italy Expands and Updates its Credit Guarantee Programs

April 17, 2020
Italy recently updated and expanded its credit guarantee program for businesses because the original was too small and too administratively complex to get funds to small businesses quickly. The Italian government, with permission from the European Commission (EC), solved the problems, in part, by: (1) significantly increasing the overall amount of funds available in the program and (2) introducing a completely new program explicitly for the self employed and companies with up to 499 employees. Continue reading “Italy Expands and Updates its Credit Guarantee Programs”