Page:United States Statutes at Large Volume 124.djvu/4053

 124 STAT. 4027 PUBLIC LAW 111–358—JAN. 4, 2011 sized manufacturers for the use or production of innovative tech- nologies. ‘‘(b) ELIGIBLE PROJECTS.—A loan guarantee may be made under the program only for a project that re-equips, expands, or estab- lishes a manufacturing facility in the United States— ‘‘(1) to use an innovative technology or an innovative process in manufacturing; ‘‘(2) to manufacture an innovative technology product or an integral component of such a product; or ‘‘(3) to commercialize an innovative product, process, or idea that was developed by research funded in whole or in part by a grant from the Federal government. ‘‘(c) ELIGIBLE BORROWER.—A loan guarantee may be made under the program only for a borrower who is a small- or medium- sized manufacturer, as determined by the Secretary under the criteria established pursuant to subsection (l). ‘‘(d) LIMITATION ON AMOUNT.—A loan guarantee shall not exceed an amount equal to 80 percent of the obligation, as estimated at the time at which the loan guarantee is issued. ‘‘(e) LIMITATIONS ON LOAN GUARANTEE.—No loan guarantee shall be made unless the Secretary determines that— ‘‘(1) there is a reasonable prospect of repayment of the principal and interest on the obligation by the borrower; ‘‘(2) the amount of the obligation (when combined with amounts available to the borrower from other sources) is suffi- cient to carry out the project; ‘‘(3) the obligation is not subordinate to other financing; ‘‘(4) the obligation bears interest at a rate that does not exceed a level that the Secretary determines appropriate, taking into account the prevailing rate of interest in the private sector for similar loans and risks; and ‘‘(5) the term of an obligation requires full repayment over a period not to exceed the lesser of— ‘‘(A) 30 years; or ‘‘(B) 90 percent of the projected useful life, as deter- mined by the Secretary, of the physical asset to be financed by the obligation. ‘‘(f) DEFAULTS.— ‘‘(1) PAYMENT BY SECRETARY.— ‘‘(A) IN GENERAL.—If a borrower defaults (as defined in regulations promulgated by the Secretary and specified in the loan guarantee) on the obligation, the holder of the loan guarantee shall have the right to demand payment of the unpaid amount from the Secretary. ‘‘(B) PAYMENT REQUIRED.—Within such period as may be specified in the loan guarantee or related agreements, the Secretary shall pay to the holder of the loan guarantee the unpaid interest on and unpaid principal of the obliga- tion as to which the borrower has defaulted, unless the Secretary finds that there was no default by the borrower in the payment of interest or principal or that the default has been remedied. ‘‘(C) FORBEARANCE.—Nothing in this subsection pre- cludes any forbearance by the holder of the obligation for the benefit of the borrower which may be agreed upon by the parties to the obligation and approved by the Sec- retary. Determination.