§1428b Prerequisite for loan or loan guarantee; maximum participation in available funds; reserves for loan guarantees

Summary

Agencies running the program must not make a loan or loan guarantee unless the applicant shows they cannot get reasonable financing elsewhere. No more than 25 percent of the program’s appropriated funds may go to any one project; guarantees may cover up to 90 percent of a loan; the agency’s share in loans must be a sensible amount tied to the minimum needed to meet the program’s goals; and agencies must keep reserves for guarantees equal to at least 25 percent of each guarantee.