This Report analyzes loan support programs in North America and Europe and describes
the special programs created to assist SMEs caught in the credit crisis. In North America
emphasis is placed on loan guarantee programs. Clearly, neither the U.S. nor Canada
funds these programs with a view of returning profits to the treasury. Programs in the UK
and Europe received more funding recently because of the credit crisis. The UK continues
to offer a mix of grants, loan guarantees and direct loans, while Europe utilizes mainly loan
guarantees along with medium to long term credit lines to banks. Risk sharing is standard
with lending banks. Most importantly, both the UK and Europe commissioned a study to
identify inefficient program practices, improve utilization and increase cooperation among
participants. In both cases recommendations were made public and implemented