Loans to third parties for which the federal government in the event of default guarantees, in whole or in part, the repayment of principal or interest to a lender or holder of a security.
Contingent liability created when the federal government assures a private lender who has made a commitment to disburse funds to a borrower that the lender will be repaid to the extent of a guarantee in the event of default by the debtor.
an agreement which gives a lender the right to specific assets of a borrower if the borrower is unable to repay the loan
An agreement by an individual, a unit of government, insurance firm, or other party to repay all of part of a loan made by a lender in the event that the borrower is unable to repay. An example is the loan guarantee program available to agricultural lenders from the Farm Service Agency in which up to 90% of an qualified loan may be covered by the guarantee.
Any guarantee, insurance, or other pledge for the payment of all or part of the principal or interest on any debt obligation of a non-federal borrower to a non-federal lender, except for the insurance of deposits, shares, or other withdrawable accounts in financial institutions.
A guarantee to repay a loan.
A program offered by state and federal agencies which decreases a lender's risk by guaranteeing a portion of a debt against default. Loan guarantees apply to both business and housing loans, and target projects that offer a public benefit, but are considered too risky to finance privately without the guarantee.