LGUGC guarantees the indebtedness of local government units (LGUs), water districts (WDs), electric cooperatives, renewable energy technology providers and state universities and colleges. The guarantee fee is a function of the underlying borrower and project risks.  Fees may range from 1% to 2% per annum. Guarantee facility, eligibility criteria and documentary requirements (See file: Eligibility_Reqts)

LGUGC implements an internal LGU credit screening and rating system in the absence of a formal stand-alone entity specializing in risk evaluation of LGUs. The LCSRS adopts internationally-accepted standards fit for due diligence requirements of private  Financial Institutions and individual investors as well.  The  system serves as the primary guide for both the LGUGC and Financial Institutions to identify LGUs that are primed for the commercial credit market. More importantly, the credit rating system establishes the LGU’s willingness to honor contractual obligations in addition to its capacity to pay.  It is also a tool for LGUs toward better local governance.

Until such time that an independent and reputable rating agency is established, LGUGC will continue to disseminate screening and rating information to the public  on a regular basis. (See file: LCSRS)

Program Management

The LGUGC offers program management services. Currently, LGUGC is managing the guarantee fund for Electric Cooperative System Loss Reduction Project (ECSLRP) of the World Bank – Global Environment Facility (WB-GEF) thru the Department of Energy (DOE). LGUGC has likewise been appointed as the program manager for the Capacity Building to Remove Barriers to Renewable Energy Development (CBRED) - Loan Guarantee Fund of the UNDP in November 2006 by DOE.