
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC4555]

 
                         TITLE 10--ARMED FORCES
 
                            Subtitle B--Army
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
                 CHAPTER 434--ARMAMENTS INDUSTRIAL BASE
 
Sec. 4555. ARMS Initiative loan guarantee program

    (a) Program Authorized.--Subject to subsection (b), the Secretary 
may carry out a loan guarantee program to encourage commercial firms to 
use eligible facilities under this chapter. Under any such program, the 
Secretary may guarantee the repayment of any loan made to a commercial 
firm to fund, in whole or in part, the establishment of a commercial 
activity to use an eligible facility under this chapter.
    (b) Advanced Budget Authority.--Loan guarantees under this section 
may not be committed except to the extent that appropriations of budget 
authority to cover their costs are made in advance, as required by 
section 504 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661c).
    (c) Program Administration.--(1) The Secretary may enter into an 
agreement with any of the officials named in paragraph (2) under which 
that official may, for the purposes of this section--
        (A) process applications for loan guarantees;
        (B) guarantee repayment of loans; and
        (C) provide any other services to the Secretary to administer 
    the loan guarantee program.

    (2) The officials referred to in paragraph (1) are as follows:
        (A) The Administrator of the Small Business Administration.
        (B) The head of any appropriate agency in the Department of 
    Agriculture, including--
            (i) the Administrator of the Farmers Home Administration; 
        and
            (ii) the Administrator of the Rural Development 
        Administration.

    (3) Each official authorized to do so under an agreement entered 
into under paragraph (1) may guarantee loans under this section to 
commercial firms of any size, notwithstanding any limitations on the 
size of applicants imposed on other loan guarantee programs that the 
official administers.
    (4) To the extent practicable, each official processing loan 
guarantee applications under this section pursuant to an agreement 
entered into under paragraph (1) shall use the same processing 
procedures as the official uses for processing loan guarantee 
applications under other loan guarantee programs that the official 
administers.
    (d) Loan Limits.--The maximum amount of loan principal guaranteed 
during a fiscal year under this section may not exceed--
        (1) $20,000,000, with respect to any single borrower; and
        (2) $320,000,000 with respect to all borrowers.

    (e) Transfer of Funds.--The Secretary may transfer to an official 
providing services under subsection (c), and that official may accept, 
such funds as may be necessary to administer the loan guarantee program 
under this section.

(Added Pub. L. 106-398, Sec. 1 [[div. A], title III, Sec. 344(a)(1)], 
Oct. 30, 2000, 114 Stat. 1654, 1654A-70.)

                  Section Referred to in Other Sections

    This section is referred to in section 2474 of this title.
