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Impact funding

The impact funding model can be thought of as the government making a certain payment to a contract or contingent on an impact that has actually occurred. The impact can be defined in binary terms (occurred or not), but the payment can also be made in proportion to the impact achieved. In the latter case, the state has the option to involve the contractor in its own success, creating a mutually beneficial partner-ship.

Results-based aid

England, Rwanda

The UK government’s Department for International Development supported an education program in Rwanda aimed at improving education for children. The support depended on the number of school-children who passed a predefined central examination. Payment was then made directly to the Ministry of Education in Rwanda, in accordance with the results obtained.

20.02.2025

Guarantee

With a guarantee in the sense of financing, the state assumes the obligation to expeditiously pay a prom-ised sum if a certain situation arises (usually if a debtor fails to pay their obligation). Thus, the state ena-bles third parties to borrow capital cheaply and easily to fulfill a task by guaranteeing the full amount or a portion of the loan.

Small Business Loan Guarantee in California

United States

In California, California Capital was founded in 1982 as a non-profit organization to implement the Small Business Loan Guarantee Program. There, companies with fewer than 750 employees had the opportunity to take out a loan covered by the state for up to 80% and a maximum of $2.5 million, with a state guarantee for up to seven years. The maximum loan amount per case was $20 million. The funds borrowed had to be used in California.

20.02.2025

Guarantee

With a guarantee in the sense of financing, the state assumes the obligation to expeditiously pay a prom-ised sum if a certain situation arises (usually if a debtor fails to pay their obligation). Thus, the state ena-bles third parties to borrow capital cheaply and easily to fulfill a task by guaranteeing the full amount or a portion of the loan.

Covid-19 Credit Guarantee Scheme 2020

Ireland

During the Covid-19 pandemic, the Irish government introduced a guarantee for loans that ranged from €10,000 to €1 million. SMEs and other qualified companies could apply directly to banks to obtain fi-nancing that was 80% covered by the government. The term of the loans ranged from one to five years.

20.02.2025

Guarantee

With a guarantee in the sense of financing, the state assumes the obligation to expeditiously pay a prom-ised sum if a certain situation arises (usually if a debtor fails to pay their obligation). Thus, the state ena-bles third parties to borrow capital cheaply and easily to fulfill a task by guaranteeing the full amount or a portion of the loan.

Damage compensation after floods

Austria

When various Austrian provinces were damaged by mudslides, floods, and landslides in 2005, the gov-ernment decided to compensate victims for the material damage incurred. To this end, government guar-antees were issued as collateral for loans to repair flood damage. This was handled by Austria Wirtschaftsservice GmbH, an administrative agency.

20.02.2025

Guaranteed availability

With the guaranteed availability model, the state ensures that a certain service is available whenever it is needed. This approach is exemplified by emergency response such as firefighting and ambulance ser-vices, but the guaranteed availability of other types of services is also of great importance.

Medical care at –70°C

Antarctica

The research facilities in Antarctica are often inaccessible due to extreme climatic conditions. If an air-plane can fly at all, it is still more than 4,500 km to the nearest hospital. The environment and tempera-tures of up to –70°C make life on site particularly dangerous. Therefore, one of the most remote clinics in the world has been established, which includes a dental clinic, trauma unit, and radiology department. Two specialists live on site and are available around the clock for emergencies.

20.02.2025

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