15 U.S.C. § 2508 — Encouragement and protection of small

Page 1843 TITLE 15—COMMERCE AND TRADE § 2509 AMENDMENTS 1978—Subsecs. (d), (e). Pub. L. 95–238 added subsecs. (d) and (e). Statutory Notes and Related Subsidiaries TRANSFER OF FUNCTIONS ‘‘Secretary of Energy’’ substituted for ‘‘Adminis- trator’’ in subsecs. (a) to (c) and the first time it ap- pears in subsec. (e) pursuant to section 301(a) of Pub. L. 95–91, see Codification note set out under section 2502 of this title. § 2508. Encouragement and protection of small business (a) Opportunity to participate The Secretary of Energy shall take such steps as are feasible to assure that small business con- cerns have a realistic and adequate opportunity to participate in the project. (b) Reservation of funds To assist in accomplishing the objectives of subsection (a), the Secretary of Energy shall re- serve, for contracts with small business con- cerns, a reasonable portion of the funds made available pursuant to this chapter for research, development, or demonstration of electric or hy- brid vehicles. (c) Contract terms and conditions; planning grants The Secretary of Energy shall, in addition to the requirements set forth in subsections (a) and (b)— (1) include in all contracts for research, de- velopment, or demonstration of electric or hy- brid vehicles such terms, conditions, and pay- ment schedules as may assist in meeting the needs of small business concerns, and shall take steps to avoid the inclusion in such con- tracts of any terms, conditions, or penalties which would tend to prevent such concerns from participating in the program under this chapter; and (2) make planning grants available to quali- fied small business concerns which require as- sistance in developing, submitting, and enter- ing into such contracts. (Pub. L. 94–413, § 9, Sept. 17, 1976, 90 Stat. 1266; Pub. L. 95–91, title III, § 301(a), Aug. 4, 1977, 91 Stat. 577.) Statutory Notes and Related Subsidiaries TRANSFER OF FUNCTIONS ‘‘Secretary of Energy’’ substituted in text for ‘‘Ad- ministrator’’ pursuant to section 301(a) of Pub. L. 95–91, see Codification note set out under section 2502 of this title. § 2509. Loan guarantees (a) Congressional policy It is the policy of the Congress to assist in the introduction into the Nation’s transportation fleet of electric and hybrid vehicles and to as- sure that qualified small business concerns and other qualified borrowers are not excluded from participation in such development due to lack of adequate capital. Accordingly, it is the policy of the Congress to provide guarantees of loans made for such purposes. (b) Encouragement of commercial production; purpose of loans In order to encourage the commercial produc- tion of electric and hybrid vehicles, the Sec- retary of Energy is authorized to guarantee, and to enter into commitments to guarantee, prin- cipal and interest on loans made by lenders to qualified borrowers, primarily small business concerns, for the purposes of— (1) research and development related to elec- tric and hybrid vehicle technology; (2) prototype development for such vehicles and parts thereof; (3) construction of capital equipment related to research on, and development and produc- tion of, electric and hybrid vehicles and com- ponents; or (4) initial operating expenses associated with the development and production of electric and hybrid vehicles and components. (c) Maximum amount of loan guarantee Any guarantee under this section shall apply only to so much of the principal amount of the loan involved as does not exceed 90 percentum of the aggregate cost of the activity with respect to which the loan is made. (d) Terms and conditions of guarantee Loan guarantees under this section shall be on such terms and conditions as the Secretary of Energy determines, except that a guarantee shall be made under this section only if— (1) the loan bears interest at a rate not to exceed such annual percent on the principal obligation outstanding as the Secretary of En- ergy determines to be reasonable, taking into account the range of interest rates prevailing in the private sector for similar loans and risks by the United States; (2) the terms of such loan require full repay- ment over a period not to exceed 15 years; (3) in the judgment of the Secretary of En- ergy, the amount of the loan (when combined with amounts available to the qualified bor- rower from other sources) will be sufficient to carry out the activity with respect to which the loan is made; (4) in the judgment of the Secretary of En- ergy, there is reasonable assurance of repay- ment of the loan by the qualified borrower; and (5) no loan shall be guaranteed by the Sec- retary of Energy under subsection (b) unless the Secretary of Energy finds that no other reasonable means of financing or refinancing is reasonably available to the applicant. (e) Maximum guarantee per loan; maximum of aggregate guarantees; Electric and Hybrid Vehicle Development Fund; establishment, funding, etc. (1) The amount of the guarantee of any loan shall not exceed $3,000,000, unless the Secretary of Energy finds that a higher guarantee level for specific loan guarantees is necessary in order to carry out the purposes of this chapter. If the Secretary of Energy makes such finding, he shall immediately report that finding to the Speaker of the House of Representatives, the President of the Senate, the Committee on Science, Space, and Technology of the House of