§17012 Advanced battery loan guarantee program

Summary

The Secretary must set up a program to back private loans for building facilities in the United States that make advanced vehicle batteries and related systems, including advanced lithium‑ion batteries, hybrid electrical parts, and software designers. A loan can be guaranteed only if the borrower cannot get credit on reasonable terms without the guarantee, the borrower’s future earnings and security make repayment likely, and the loan’s interest rate is fair compared with similar U.S. government securities. The Secretary will favor projects that have required permits, are likely to succeed, and serve areas that need the facility. Guaranteed loans can be no longer than 20 years. Changes to the loan need the Secretary’s approval. Borrowers must provide repayment protection equal to at least 20% of the loan (for example, a bond, insurance, or collateral) and must pay fees to cover the Secretary’s administrative costs. The U.S. government backs these guarantees, and a guarantee is final and cannot be contested by a holder of the loan. The Secretary must report to Congress each year until each guaranteed loan is fully repaid. Congress may provide whatever money is needed to run the program. The authority to make these guarantees ends 10 years after December 19, 2007.