Credit and Insurance involves the use of government funds to cover the subsidy cost of a direct loan or loan guarantee or to protect/indemnify members of the public from financial losses.
- Direct Loans
Direct Loans involve all disbursement of funds by the Government to a non-Federal borrower for a specific period of time, with a reasonable expectation of repayment. Such loans may or may not require the payment of interest.
- Loan Guarantees
Loan Guarantees involve an arrangement in which the Federal Government pledges to provide payment for all or a part of the principal or interest on any debt obligation of a non-Federal borrower to a non-Federal lender.
- General Insurance
General Insurance involves the disbursement of Federal Funds to protect/indemnify (or otherwise compensate) individuals, corporations and/or organizations from financial losses (i.e., Crop Insurance, Dairy Indemnity Program, Federal Mortgage Insurance, Service-members’ Group Life Insurance) sustained under specified conditions.