1. U.S. Code
  2. title 10
  3. subtitle A
  4. part V
  5. subpart I
  6. chapter 389
  7. subchapter II
  8. § 4981

Collapse to view only § 4981. Establishment of loan guarantee program

§ 4981. Establishment of loan guarantee program
(a)Establishment.—In order to meet the national security objectives in section 4811(a) of this title, the Secretary of Defense shall establish a program under which the Secretary may issue guarantees assuring lenders against losses of principal or interest, or both principal and interest, for loans made to qualified commercial firms to fund, in whole or in part, any of the following activities:
(1) The improvement of the protection of the critical infrastructure of the commercial firms.
(2) The refinancing of improvements previously made to the protection of the critical infrastructure of the commercial firms.
(b)Qualified Commercial Firms.—For purposes of this section, a qualified commercial firm is a company or other business entity (including a consortium of such companies or other business entities, as determined by the Secretary) that the Secretary determines—
(1) conducts a significant level of its research, development, engineering, and manufacturing activities in the United States;
(2) is a company or other business entity the majority ownership or control of which is by United States citizens or is a company or other business of a parent company that is incorporated in a country the government of which—
(A) encourages the participation of firms so owned or controlled in research and development consortia to which the government of that country provides funding directly or provides funding indirectly through international organizations or agreements; and
(B) affords adequate and effective protection for the intellectual property rights of companies incorporated in the United States;
(3) provides technology products or services critical to the operations of the Department of Defense;
(4) meets standards of prevention of cyberterrorism applicable to the Department of Defense; and
(5) agrees to submit the report required under section 4985 of this title.
(c)Loan Limits.—The maximum amount of loan principal guaranteed during a fiscal year under this section may not exceed $10,000,000, with respect to all borrowers.
(d)Goals and Standards.—The Secretary shall prescribe regulations setting forth goals for the use of the loan guarantees provided under this section and standards for evaluating whether those goals are met by each entity receiving such loan guarantees.
(e)Authority Subject to Provisions of Appropriations.—The Secretary may guarantee a loan under this subchapter only to such extent or in such amounts as may be provided in advance in appropriations Acts.
(Added Pub. L. 106–398, § 1 [[div. A], title X, § 1033(a)(1)], Oct. 30, 2000, 114 Stat. 1654, 1654A–258, § 2541; renumbered § 4981 and amended Pub. L. 116–283, div. A, title XVIII, §§ 1873(b), (c)(2), (e)(1), 1883(b)(2), Jan. 1, 2021, 134 Stat. 4290, 4294; Pub. L. 117–81, div. A, title XVII, § 1701(d)(19), Dec. 27, 2021, 135 Stat. 2138.)

CITE AS: 10 USC 4981

§ 4982. Fees charged and collected
(a)Fee Required.—The Secretary of Defense shall assess a fee for providing a loan guarantee under this subchapter.
(b)Amount of Fee.—The amount of the fee shall be not less than 75 percent of the amount incurred by the Secretary to provide the loan guarantee.
(c)Special Account.—
(1) Such fees shall be credited to a special account in the Treasury.
(2) Amounts in the special account shall be available, to the extent and in amounts provided in appropriations Acts, for paying the costs of administrative expenses of the Department of Defense that are attributable to the loan guarantee program under this subchapter.
(3)
(A) If for any fiscal year amounts in the special account established under paragraph (1) are not available (or are not anticipated to be available) in a sufficient amount for administrative expenses of the Department of Defense for that fiscal year that are directly attributable to the administration of the program under this subchapter, the Secretary may use amounts currently available for operations and maintenance for Defense-wide activities, not to exceed $500,000 in any fiscal year, for those expenses.
(B) The Secretary shall, from funds in the special account established under paragraph (1), replenish operations and maintenance accounts for amounts expended under subparagraph (A).
(Added Pub. L. 106–398, § 1 [[div. A], title X, § 1033(a)(1)], Oct. 30, 2000, 114 Stat. 1654, 1654A–259, § 2541a; renumbered § 4982, Pub. L. 116–283, div. A, title XVIII, § 1873(b), (c)(2), Jan. 1, 2021, 134 Stat. 4290.)

CITE AS: 10 USC 4982

§ 4983. Administration
(a)Agreements Required.—The Secretary of Defense may enter into one or more agreements, each with an appropriate Federal or private entity, under which such entity may, under this subchapter—
(1) process applications for loan guarantees;
(2) administer repayment of loans; and
(3) provide any other services to the Secretary to administer this subchapter.
(b)Treatment of Costs.—The costs of such agreements shall be considered, for purposes of the special account established under section 4982(c), to be costs of administrative expenses of the Department of Defense that are attributable to the loan guarantee program under this subchapter.
(Added Pub. L. 106–398, § 1 [[div. A], title X, § 1033(a)(1)], Oct. 30, 2000, 114 Stat. 1654, 1654A–259, § 2541b; renumbered § 4983 and amended Pub. L. 116–283, div. A, title XVIII, § 1873(b), (c)(2), (e)(2), Jan. 1, 2021, 134 Stat. 4290.)

CITE AS: 10 USC 4983

§ 4984. Transferability, additional limitations, and definition
The following provisions of subchapter I of this chapter apply to guarantees issued under this subchapter:
(1) Section 4972, relating to transferability of guarantees.
(2) Subsections (b) and (c) of section 4973, providing limitations.
(3) Section 4975(2), providing a definition of the term “cost”.
(Added Pub. L. 106–398, § 1 [[div. A], title X, § 1033(a)(1)], Oct. 30, 2000, 114 Stat. 1654, 1654A–260, § 2541c; amended Pub. L. 107–107, div. A, title X, § 1048(a)(24), Dec. 28, 2001, 115 Stat. 1224; renumbered § 4984 and amended Pub. L. 116–283, div. A, title XVIII, § 1873(b), (c)(2), (e)(3), Jan. 1, 2021, 134 Stat. 4290.)

CITE AS: 10 USC 4984

§ 4985. Reports

(Added Pub. L. 106–398, § 1 [[div. A], title X, § 1033(a)(1)], Oct. 30, 2000, 114 Stat. 1654, 1654A–260, § 2541d; amended Pub. L. 108–136, div. A, title X, § 1031(a)(25), Nov. 24, 2003, 117 Stat. 1598; renumbered § 4985, Pub. L. 116–283, div. A, title XVIII, § 1873(b), (c)(2), Jan. 1, 2021, 134 Stat. 4290.)

CITE AS: 10 USC 4985