Federal Credit Reform Act of 1988

[AI summary unavailable — showing source text] Federal Credit Reform Act of 1988 - Establishes procedures for the budgetary treatment and financing of Federal direct loan and loan guarantee programs. Defines "subsidy" as: the difference in cost to the borrower between the direct loan or guaranteed loan and alternative private financing potentially available to the borrower for the same or similar purpose. Makes any direct loan obligation of a Federal agency an obligation of the Direct Loan Fund. Requires each agency to include in its budget proposal for a fiscal year: (1) the planned level of new direct loan obligations and new loan guarantee commitments; and (2) the estimated subsidies associated with each. Prohibits an agency from making a direct loan obligation or loan guarantee commitment unless: (1) funds have been appropriated or are available on a permanent indefinite basis for the subsidy; or (2) the use of funds otherwise available to the agency for the subsidy has been limited. Provides that the loan subsidy amount shall constitute the obligation of the agency and the difference between such amount and the face value of the loan shall constitute the obligation of the Direct Loan Fund. Requires the subsidy to be paid a…