Welcome to Federal Credit Fridays! The U.S. government is one of the largest lenders and credit guarantors on earth. Its portfolio is estimated at over $3.6 trillion, as measured by loan assets and the face value of loan guarantees. The government uses credit for a wide variety of policy missions, including housing, higher education, small businesses, rural and urban economic development, infrastructure, and export promotion, among others. This podcast will familiarize you with the vast world of federal credit, the similarities and differences between these programs, and the importance of their work to achieving policy missions within the framework of public-private collaboration.
In this week's episode of Federal Credit Fridays, Summit Senior Partner Anthony Curcio spoke with Summit Director Brian Oakley and Savalan Project Finance and Credit Advisory Lead Kristy David about the role of independent financial advisors (IFAs) in federal credit programs. Their conversation explored why IFAs have become more important, what they do, and how agencies can use them effectively.
Federal credit programs are supporting increasingly complex transactions across infrastructure, energy, and other policy-driven sectors. As these programs grow, agencies often need specialized financial expertise to evaluate risk, structure transactions, and protect taxpayer resources while preserving government decision-making authority.
Brian explained that the need for IFAs reflects a changing federal credit landscape. Agencies are evaluating more complex credits, early-stage companies, and transactions with sophisticated structures and risk allocations. Some programs have long relied on outside financial advisors; others bring them in when a transaction is more complicated than the norm.
Kristy described the IFA role in straightforward terms: advisors analyze risk and help structure a deal so the lender has confidence the debt can be repaid. That support can include financial modeling, stress testing, reviewing project economics, and identifying terms or protections that may be needed if performance changes over time.
A central point from the discussion was that IFAs inform decisions; they do not make them for the government. Instead, they help agencies clarify risks, evaluate mitigants, and develop transaction structures that align with agency policies and taxpayer protection. Brian noted that the final work product is typically not a simple yes-or-no opinion, but a report summarizing strengths, weaknesses, risks, and recommendations.
The guests also emphasized the importance of timing. Bringing the IFA team in early can prevent delays, support internal discussions, and keep the process moving as deal terms evolve. For agencies managing complex, policy-driven lending decisions, that early and ongoing support is especially valuable.
As federal credit continues to play a larger role in public policy, the skills IFAs bring—financial analysis, risk assessment, modeling, and transaction structuring—will remain important tools for helping agencies make informed, well-supported decisions.
Listen to the full episode of Federal Credit Fridays for the complete conversation:
* Accessibility note: Click here for a text transcript of this conversation.