§1690 Loans from Trust Territory of the Pacific Islands Economic Loan Fund; restrictions; guarantees

Summary

A loan or loan guarantee under this program will only be given if the applicant proves to the territorial agency that they cannot get other reasonable financing. Loans cannot be larger than what can reasonably be repaid, the smallest amount needed to meet the program’s goals, or 25 percent of the program’s appropriated funds. A guarantee may cover no more than 90 percent of a loan’s outstanding balance, and the reserve held to back that guarantee must be at least 25 percent of the guaranteed amount.