§2423 Loan guarantees

Summary

If money is available, the Secretary may guarantee loans to lenders for projects that meet the eligibility rules in section 2422. These guarantees are meant to help private or lender financing for the project. The guarantees must include terms the Secretary thinks protect the United States’ money. A guarantee cannot cover more than 90 percent of the project cost as estimated when the guarantee is issued. Interest rates must be set at a level the Secretary finds appropriate, considering similar private loans and risks. The loan must be fully paid off within 40 years. The guaranteed loan cannot be put behind other loans in repayment priority. Any prepayment or refinancing must be worked out between the borrower and the lender and approved by the Secretary.