Lending institutions can be encouraged to participate in the expansion of piped water network through the Development Credit Authority (DCA), a financial instrument issued by the US Treasury which guarantees selected private lenders for up to 50% of the risk of extending credit to any given water utility. There are four potential variations of a DCA which are available under the program:

• A loan guarantee, where the DCA is used to provide partial coverage on a project loan where borrower, lender and users of loan proceeds are known.
• A portfolio guarantee, where the DCA provides an approved lender with partial coverage on a portfolio of loans.
• A bond guarantee, supporting a bond issue for an approved purpose by a financial institutions, private sector corporation, or sub-national entity.
• A portable guarantee, providing an identified potential borrower with a letter of guarantee commitment, through which the latter may seek the most advantageous terms from the local financial market.