### Question
How is the "cost" defined?


### Answer
The term **cost** is defined in *2 U.S.C. § 661a* as follows -

> the estimated long-term cost to the Government of a direct loan or loan guarantee or modification thereof, calculated on a net present value basis, excluding administrative costs and any incidental effects on governmental receipts or outlays

#### Citation:
  - *2 U.S.C. § 661a*
  - Heading: **CHAPTER 17A-CONGRESSIONAL BUDGET AND FISCAL OPERATIONS > SUBCHAPTER III-CREDIT REFORM**

