es ▁extended ▁by ▁USA ID , ▁and ▁now ▁through ▁the ▁D FC , ▁allow ▁the ▁U . S . ▁Government ▁to ▁use ▁credit ▁to ▁purs ue ▁the ▁development ▁purposes ▁specified ▁under ▁the ▁Foreign ▁Ass istance ▁Act ▁( FA A ) ▁of ▁ 1 9 6 1 , ▁as ▁am ended . ▁These ▁guarante es ▁typically ▁cover ▁up ▁to ▁ 5 0 % ▁of ▁the ▁principal ▁of ▁lo ans ▁to ▁entrepr ene urs , ▁small -, ▁and ▁medium - s ized ▁business es , ▁and ▁other ▁projects ▁that ▁advance ▁the ▁U . S . ▁Government ' s ▁international ▁development ▁object ives . ▁▁ ▁In ▁addition ▁to ▁mobil izing ▁the ▁finan cing ▁of ▁specific ▁projects , ▁partial ▁guarante es ▁help ▁demonstrate ▁to ▁local ▁banks ▁that ▁lo ans ▁to ▁unders erved ▁se ctors ▁can ▁be ▁prof itable . ▁This ▁fost ers ▁self - s ust aining ▁finan cing , ▁because ▁l enders ▁become ▁willing ▁to ▁l end ▁on ▁a ▁continuous ▁basis ▁without ▁the ▁support ▁of ▁guarante es ▁from ▁USA ID ▁or ▁other ▁don ors . ▁Part ial ▁guarante es ▁are ▁a ▁powerful ▁catal yst ▁for ▁un lock ing ▁the ▁resources ▁of ▁private ▁credit ▁mark ets ▁to ▁sp ur ▁economic ▁growth ▁while ▁adv ancing ▁development ▁object ives . ▁ ▁Ben ef its ▁of ▁using ▁a ▁credit ▁guarantee ▁Cred it ▁assistance ▁is ▁particularly ▁useful ▁in ▁areas ▁such ▁as ▁micro enter prise ▁and ▁small ▁enter prise , ▁priv at ization ▁of ▁public ▁services , ▁infrastr ucture , ▁efficient ▁and ▁renew able ▁energy , ▁and ▁climate ▁change . ▁Cred it