Page:United States Statutes at Large Volume 111 Part 3.djvu/538

 Ill STAT. 2626 PUBLIC LAW 105-135—DEC. 2, 1997 by the United States for defense, the termination or cancellation of a defense contract, the failure to proceed with an approved major weapon system, the merger or consolidation of the operations of a defense contractor, or the closure or realignment of a military installation. (C) The extent to which the loans to be guaranteed would stimulate job creation and new economic activities in communities most adversely affected by reductions in expenditures by the United States for defense, the termination or cancellation of a defense contract, the failure to proceed with an approved major weapon system, the merger or consolidation of the operations of a defense contractor, or the closure or realignment of a military installation. (D) The extent to which the loans to be guaranteed would be used to acquire (or permit the use of other funds to acquire) capital equipment to modernize or expand the facilities of the borrower to enable the borrower to remain in the national technology and industrial base available to the Department of Defense. (3) ELIGIBILITY REQUIREMENTS.— To be eligible for a loan guarantee under the DELTA program, a borrower must demonstrate to the satisfaction of the Administrator that, during any 1 of the 5 preceding operating years of the borrower, not less than 25 percent of the value of the borrower's sales were derived from— (A) contracts with the Department of Defense or the defense-related activities of the Department of Energy; or (B) subcontracts in support of defense-related prime contracts. (e) MAXIMUM AMOUNT OF LOAN PRINCIPAL. — With respect to each borrower, the maximum amount of loan principal for which the Administrator may provide a guarantee under this section during a fiscal year may not exceed $1,250,000. (0 LOAN GUARANTY RATE. —The maximum allowable guarantee percentage for loans guaranteed under this section may not exceed 80 percent. (g) FUNDING. — (1) IN GENERAL.— The funds that have been made available for loan guarantees under the DELTA program and have been transferred from the Department of Defense to the Small Business Administration before the date of the enactment of this Act shall be used for carrying out the DELTA program under this section. (2) CONTINUED AVAILABILITY OF EXISTING FUNDS.— The funds made available under the second proviso under the heading "R ESEARCH, DEVELOPMENT, TEST AND EVALUATION, DEFENSE-WIDE" in Public Law 103-335 (108 Stat. 2613) shall be available until expended— (A) to cover the costs (as defined in section 502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5))) of loan guarantees issued under this section; and (B) to cover the reasonable costs of the administration of the loan guarantees.

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