Guarantee funds for small enterprises. A manual for guarantee fund managers

Explains how credit guarantee funds can facilitate access to finance for small enterprises and reviews the advantages and disadvantages of different models of funds. Provides guidance for guarantee fund managers on eligibility and risk sharing, operating procedures, marketing, pricing and accounting.

Guarantee funds for small enterprises can make bank finance more accessible for small entrepreneurs often offering risk-sharing and motivating financial institutions to explore new market segments. The success of these funds depends largely on their design and this manual provides useful guidance on how to set incentives and sanctions and govern a fund, and more critically, how to establish risk-sharing arrangements, eligibility criteria, staffing and internal reporting and control systems.