Established in 1987 to guarantee loans for college building programs.

The house, which cost $200,000, was bought with a loan guaranteed by the state.

More recently, its business has come mostly from guaranteeing loans on other companies' books.

In addition, it guarantees loans made by commercial banks to the same foreign customers.

At the close of 2002, for example, there were $12 billion in loans guaranteed at the 9.5 percent interest rate, federal data show.

This year, there is $9.4 billion available for small-business loans guaranteed by the agency.

As a result, many farms are forced to rely on outside investors to guarantee loans.

More recently, it has accepted fees from banks simply to guarantee loans sitting on the banks' own books.

All loans guaranteed under the program must be repaid in full by Dec. 31, 2010.

The bank will essentially guarantee loans, covering the added costs associated with the higher risk of lending in Mexico.