On the recordSeptember 10, 1996
not only does it cost the American taxpayers and come out of the budget to a tune of $120 million, I am not sure if my colleagues understand what a loan guarantee is. A loan guarantee by the Federal Government means if the loan goes bad, the Government makes the loan good. That is the direct liability by the taxpayers of this country involved in these programs. If you have got an F minus-minus rating and you go under, guess who picks up the bill? The barber in Westerville picks up the bill, the beautician in Wheeling, WV, picks up the bill. Look at this loan portfolio. We not only have direct costs of running this program, but tremendous liabilities to the taxpayers involved in loan guarantees from the Federal Government.
Source
govinfo.gov
