Government guarantee
A commitment by government to cover an agreed part of a lender’s loss under a qualifying scheme. It does not normally remove the borrower’s repayment obligation.
Related terms
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Government-backed loan
A loan made by a lender under a government-supported scheme where the state guarantees part of the lender’s exposure.
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CBILS loan
A loan made under the Coronavirus Business Interruption Loan Scheme, with a government-backed guarantee to the lender but repayment obligations remaining with the borrower.
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RLS loan
A business loan made under the Recovery Loan Scheme through an accredited lender, with government support applying to the lender rather than removing the borrower’s repayment obligation.
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