Able Quote by Karen Mills
“We were able in the Recovery Act to get a program where we increased our loan guarantees to 90 percent. Because we had that program, a bank wouldn't have to take that much risk.”
About This Quote
Source Testimony: U.S. Congressional hearing on the Recovery Act, 2009
Increasing loan guarantees lowers banks’ risk, enabling more lending to support the economy
In simple terms: Higher guarantees reduce risk, encouraging banks to lend more
Key Takeaway
Leverage loan guarantees to stimulate investment
Themes
finance
government policy
economic stimulus
Mood
analytical
pragmatic
Type
policy
economic
When to use this quote
- small business financing
- infrastructure projects
- housing loans
- energy development
Key Concepts
risk sharing
public‑private partnership
Questions to Reflect On
- What sectors benefit most from loan guarantees?
- How can risk be balanced with fiscal responsibility?
A Different Perspective
Guarantees may not address underlying creditworthiness of borrowers
