§7555 Arms Initiative Loan Guarantee Program

Summary

The Secretary may run a loan guarantee program to get private companies to use eligible facilities. The program can promise to pay back all or part of a loan made to a company that starts a commercial activity at an eligible facility. Guarantees can only be made if money to cover their cost is provided in advance, as required by section 504 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661c). The Secretary can have other officials help run the program, like the Small Business Administration head and certain Agriculture agency heads (for example, the Farmers Home Administration and the Rural Development Administration). Those officials can take applications, guarantee loans, and do related work. They may guarantee loans to companies of any size and should use their usual procedures when possible. No single borrower can have more than $20,000,000 guaranteed in one fiscal year, and total guarantees across all borrowers may not exceed $320,000,000 in a fiscal year. The Secretary may give these officials funds to run the program, and they may accept them.