Public guarantees refer to loan guarantees from public banks and institutions. By providing loan guarantees, these public organisations enable (private) financial institutions to invest in innovative companies or projects as the guarantee lowers their risk profile.
On the European level, three loan guarantee instruments exist with relevance to circular economy initiatives in your city:
- COSME – Loan Guarantee Facility
- EaSI Guarantee
- InnovFin Guarantees
- InvestEU – Guarantees
- Modernisation Fund
In addition, public guarantees can be offered through financial intermediaries, such as national level institutions and banks.