15 U.S. Code § 3721 - Federal loan guarantees for innovative technologies in manufacturing
The Secretary shall establish a program to provide loan guarantees for obligations to small- or medium-sized manufacturers for the use or production of innovative technologies.
(b) Eligible projects
A loan guarantee may be made under the program only for a project that re-equips, expands, or establishes a manufacturing facility in the United States—
(c) Eligible borrower
A loan guarantee may be made under the program only for a borrower who is a small- or medium-sized manufacturer, as determined by the Secretary under the criteria established pursuant to subsection (l).
(d) Limitation on amount
A loan guarantee shall not exceed an amount equal to 80 percent of the obligation, as estimated at the time at which the loan guarantee is issued.
(e) Limitations on loan guarantee
No loan guarantee shall be made unless the Secretary determines that—
(1) there is a reasonable prospect of repayment of the principal and interest on the obligation by the borrower;
(2) the amount of the obligation (when combined with amounts available to the borrower from other sources) is sufficient to carry out the project;
(4) the obligation bears interest at a rate that does not exceed a level that the Secretary determines appropriate, taking into account the prevailing rate of interest in the private sector for similar loans and risks; and
(1) Payment by Secretary
(A) In general
If a borrower defaults (as defined in regulations promulgated by the Secretary and specified in the loan guarantee) on the obligation, the holder of the loan guarantee shall have the right to demand payment of the unpaid amount from the Secretary.
(B) Payment required
Within such period as may be specified in the loan guarantee or related agreements, the Secretary shall pay to the holder of the loan guarantee the unpaid interest on and unpaid principal of the obligation as to which the borrower has defaulted, unless the Secretary finds that there was no default by the borrower in the payment of interest or principal or that the default has been remedied.
(A) In general
If the Secretary makes a payment under paragraph (1), the Secretary shall be subrogated to the rights, as specified in the loan guarantee, of the recipient of the payment or related agreements including, if appropriate, the authority (notwithstanding any other provision of law)—
(i) to complete, maintain, operate, lease, or otherwise dispose of any property acquired pursuant to such loan guarantee or related agreement; or
(g) Terms and conditions
A loan guarantee under this section shall include such detailed terms and conditions as the Secretary determines appropriate—
In establishing the terms and conditions of a loan guarantee under this section, the Secretary shall consult with the Secretary of the Treasury.
(1) In general
The Secretary shall charge and collect fees for loan guarantees in amounts the Secretary determines are sufficient to cover applicable administrative expenses.
Fees collected under this subsection shall—
(1) In general
With respect to a loan guarantee under this section, the borrower, the lender, and any other appropriate party shall keep such records and other pertinent documents as the Secretary shall prescribe by regulation, including such records as the Secretary may require to facilitate an effective audit.
(k) Full faith and credit
The full faith and credit of the United States is pledged to the payment of all loan guarantees issued under this section with respect to principal and interest.
The Secretary shall issue final regulations before making any loan guarantees under the program. The regulations shall include—
(1) criteria that the Secretary shall use to determine eligibility for loan guarantees under this section, including—
(2) criteria that the Secretary shall use to determine the amount of any fees charged under subsection (i), including criteria related to the amount of the obligation;
(1) Annual independent audits
The Secretary shall enter into an arrangement with an independent auditor for annual evaluations of the program under this section.
(2) Comptroller general review
The Comptroller General of the United States shall conduct a biennial review of the Secretary’s execution of the program under this section.
The results of the independent audit under paragraph (1) and the Comptroller General’s review under paragraph (2) shall be provided directly to the Committee on Science and Technology of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate.
(n) Report to Congress
Concurrent with the submission to Congress of the President’s annual budget request in each year after January 4, 2011, the Secretary shall transmit to the Committee on Science and Technology of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report containing a summary of all activities carried out under this section.
(o) Coordination and nonduplication
To the maximum extent practicable, the Secretary shall ensure that the activities carried out under this section are coordinated with, and do not duplicate the efforts of, other loan guarantee programs within the Federal Government.
(p) MEP centers
The Secretary may use centers established under section 278k of this title to provide information about the program established under this section and to conduct outreach to potential borrowers, as appropriate.
(q) Minimizing risk
The Secretary shall promulgate regulations and policies to carry out this section in accordance with Office of Management and Budget Circular No. A–129, entitled “Policies for Federal Credit Programs and Non-Tax Receivables”, as in effect on January 4, 2011.
(r) Sense of Congress
It is the sense of Congress that no loan guarantee shall be made under this section unless the borrower agrees to use a federally-approved electronic employment eligibility verification system to verify the employment eligibility of—
(1) all persons hired during the contract term by the borrower to perform employment duties within the United States; and
In this section:
(2) Innovative process
The term “innovative process” means a process that is significantly improved as compared to the process in general use in the commercial marketplace in the United States at the time the loan guarantee is issued.
(3) Innovative technology
The term “innovative technology” means a technology that is significantly improved as compared to the technology in general use in the commercial marketplace in the United States at the time the loan guarantee is issued.
(4) Loan guarantee
The term “obligation” means the loan or other debt obligation that is guaranteed under this section.
Source(Pub. L. 96–480, § 26, as added Pub. L. 111–358, title VI, § 602,Jan. 4, 2011, 124 Stat. 4026.)
Change of Name
Committee on Science and Technology of House of Representatives changed to Committee on Science, Space, and Technology of House of Representatives by House Resolution No. 5, One Hundred Twelfth Congress, Jan. 5, 2011.