loan guarantee
noun[C]
(USalsoloan guaranty)ukusBANKING,FINANCE
anagreementwhere agovernmentorfinancialorganizationpromisestopayback aloanif theborrowercannot:
Aloanguaranteefrom thegovernmentallowsbusinessestoborrowmoneyatcheaperrates.
loan guarantee fund/package/programBank ofScotlandprovided£100,000 ofequity,guaranteedinpartby theDepartmentof Trade and Industry'ssmallfirmsloanguaranteescheme.