Hello. I am new to the forum, and will openly admit that while not a layman, I have a lot to learn re:the industry.

Here is the gist of my query: one can get a loan guaranty / guarantee in the real world. For instance, SBA business acquisition lenders have 75% of their (above-some-threshold, $750K I believe) loan guaranteed by the SBA. The borrower pays an SBA guaranty fee. I look at this as insurance. If the borrower defaults, the lender's tail is 75% covered, but also has some (25%) skin in the game.

Now step away from the SBA / Government / bureaucracy example, and take this concept in principle. A lender could also pay this "guaranty" fee. Again, it is basically an insurance premium.

In the real world, are there companies whose business is guaranteeing loans for profit? Does anyone have any links / web sites that either explain this industry or companies that write these policies? When you get into the bigger business acquisition lending game (where you have different tranches taking different risks in the capital structure: investment grade and mezz lenders), are there companies that guarantee a portion of a lender's loan for a fee? If so, I would appreciate any communication / links. If not, I would be very curious to hear why not. Thanks in advance for your replies.