One debate within the varieties of capitalism approach deals with the significance of institutions below the national level. On the basis of a case study of the loan guarantee system, this article deals with the interaction between institutions and regional actors in Sweden during the formation of post-war regional development policy. We conclude that regional economic problems have been addressed through adaptation of national institutions. From an actor perspective, these results correspond with the revised VoC framework which emphasises that state institutions provide both a framework for business activities and a means for pursuing them.