This paper outlines a risk-based and sustainability-adjusted credit guarantee pricing framework for micro, small, and medium-sized enterprises (MSMEs) in Malaysia. The framework considers a firm’s financial health, environmental footprint, and macroeconomic conditions. In bank-dominated financial systems such as Malaysia‘s, credit guarantees help facilitate lending to MSMEs. The paper proposes a way to both ease MSMEs‘ access to finance and incentivize responsible business practices.