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USAID, through the MSED program, provided linkages between financial institutions and small and microenterprises lacking full access to formal financial markets. Its primary tool was the Loan Portfolio Guaranty program, which provided loan guarantees covering up to 50% of the principal loss on a portfolio of small business loans, and up to 70% for micro-loans, made by financial institutions. Guarantees were combined with training and technical assistance to improve the capacity of banks to assess small and micro business credits, and to assist borrowers to present bankable proposals to lending institutions.