The global pandemic, combined with multiple economic shocks and increased global interest rates, has intensified debt risks and limited the fiscal space of lower-income and emerging market governments. The Biden administration has recognized the need to address these challenges and compete with China’s Belt and Road Initiative by providing direct and concessional support to developing country partner governments. However, current efforts have primarily focused on scaling up private financing channels, leaving partner governments with limited options for direct support. This paper proposes the reimagining of the US Sovereign Loan Guarantee (SLG) program as a means to mitigate debt vulnerabilities and support governments in dire fiscal straits.