Guaranteed Loan Subsidy Cost in the United States

Guaranteed Loan Subsidy Cost in the Federal Budget Process

Meaning of Guaranteed Loan Subsidy Cost in the congressional and executive budget processes (GAO source): The estimated long-term cost to the government of a loan guarantee, excluding administrative costs. The Federal Credit Reform Act of 1990 (FCRA) specifies that the credit subsidy cost of a loan guarantee is the net present value, at the time a guaranteed loan is disbursed by the lender, of the following cash flows: (1) estimated payments by the government to cover defaults, delinquencies, interest subsidies, or other payments and (2) the estimated payments to the government, including origination and other fees, penalties, and recoveries.

Guide to U.S. Federal Credit Subsidy Cost (Budget Process)

• Credit Subsidy Cost
• Direct Loan Subsidy Cost
• Guaranteed Loan Subsidy Cost

Resources

See Also

• Federal Appropriations
• Entries about the United States Budget Process in the Encyclopedia (including Guaranteed Loan Subsidy Cost)
• Public Debt

Further Reading

• Legislatures and the budget process: the myth of fiscal control

  (J Wehner, 2010)

• Reconcilable Differences?: Congress, the Budget Process, and the Deficit (JB Gilmour, 1990)
• Fiscal institutions and fiscal performance

  (JM Poterba, J von Hagen, 2008)