bailout

/ˈbeɪlaʊt/

/ˈbeɪlaʊt/

Other forms: bailouts

When a business is in financial trouble and the government helps them, that's a bailout. In 2008, the U.S. Treasury provided bailouts to several big banks, insurance companies, and car manufacturers.

Anyone receiving much-needed financial assistance gets a bailout, but the term is most often used when a large institution or corporation needs cash and the government provides it. When they face the threat of bankruptcy and failure, businesses appeal for an infusion of money. If the companies are seen as vital to the country's economy or infrastructure, the government may offer a bailout. The maritime origin of bailout describes scooping (or bailing) water out of a sinking boat.

Definitions of bailout

1. noun

   a grant of money to rescue a person, company, or institution from financial distress
   type of:

   aid, economic aid, financial aid

   money given or loaned to support someone, especially a student in higher education