federal credit agencies Definition

federal credit agencies

Definition

Lending institutions set up or sponsored by the U.S. federal government, such as Small Business Administration (SBA), Federal Housing Administration (FHA), Rural Housing Service, and Veteran Affairs' Loan Program. These agencies borrow from the U.S. Treasury (through the Federal Financing Bank) in order to offer below market rate loans to individuals, businesses, and other types of organizations. These loans are offered as a means of developmental support to those who do not have ready access to the financial markets.

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