Guarantees are a powerful credit-enhancement tool that can provide investors with the ability to leverage more capital to address social and environmental challenges.
The GIIN’s issue brief Scaling the Use of Guarantees in U.S. Community Investing takes an in-depth look at the application, benefits, and scalability of financial guarantees in impact investing. Supported by the Kresge Foundation, the study outlines how guarantees have been used to date in U.S. community investing, what challenges have been associated with their use, and what opportunities exist to use guarantees at greater scale to support communities and the environment.
The study analyzes a database of 58 deals involving guarantees in U.S. community investing, and draws from 40 interviews with a range of practitioners and experts, as well as input from the GIIN’s Guarantees Working Group which convened from August 2016 – May 2017. This paper also includes case studies that highlight how guarantees have been structured in areas such as affordable housing, healthcare, community revitalization, and energy efficiency.