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


### Answer
The term **direct loan** is defined in *49 U.S.C. § 22401* 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

#### Citation:
  - *49 U.S.C. § 22401*
  - Heading: **SUBTITLE V-RAIL PROGRAMS > PART B-ASSISTANCE > CHAPTER 224-RAILROAD REHABILITATION AND IMPROVEMENT FINANCING**

