10 U.S. Code § 2541 - Establishment of loan guarantee program
prev | next
(a) Establishment.— In order to meet the national security objectives in section 2501 (a) of this title, the Secretary of Defense shall establish a program under which the Secretary may issue guarantees assuring lenders against losses of principal or interest, or both principal and interest, for loans made to qualified commercial firms to fund, in whole or in part, any of the following activities:
(b) Qualified Commercial Firms.— For purposes of this section, a qualified commercial firm is a company or other business entity (including a consortium of such companies or other business entities, as determined by the Secretary) that the Secretary determines—
(1) conducts a significant level of its research, development, engineering, and manufacturing activities in the United States;
(2) is a company or other business entity the majority ownership or control of which is by United States citizens or is a company or other business of a parent company that is incorporated in a country the government of which—
(A) encourages the participation of firms so owned or controlled in research and development consortia to which the government of that country provides funding directly or provides funding indirectly through international organizations or agreements; and
(3) provides technology products or services critical to the operations of the Department of Defense;
(5) agrees to submit the report required under section 2541d of this title.
(c) Loan Limits.— The maximum amount of loan principal guaranteed during a fiscal year under this section may not exceed $10,000,000, with respect to all borrowers.
(d) Goals and Standards.— The Secretary shall prescribe regulations setting forth goals for the use of the loan guarantees provided under this section and standards for evaluating whether those goals are met by each entity receiving such loan guarantees.
LII has no control over and does not endorse any external Internet site that contains links to or references LII.