Private foundations aren’t limited to making grants in support of a charitable cause. They may also make loans, loan guarantees. PRI loan guarantees allow a foundation to extend its credit to a grantee without liquidating the foundation’s current holdings or disbursing cash (unless the guarantee is called). This type of support is particularly helpful to organizations whose ability to access capital (or access capital at reasonable rates) from traditional banks is limited because of a lack of credit history or uncertainty about the eventual success of a project.
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