### Question
How is the term direct loan defined?


### Answer
The term **direct loan** is defined in *2 U.S.C. § 661a* as the following:

> a disbursement of funds by the Government to a non-Federal borrower under a contract that requires the repayment of such funds with or without interest

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

