§2092. Loans to private business enterprises

(a) Purposes

To expedite production and deliveries or services to aid in carrying out Government contracts for the procurement of industrial resources or a critical technology item for the national defense, the President may make provision for loans (including participations in, or guarantees of, loan) to private business enterprises (including research corporations not organized for profit) for the expansion of capacity, the development of technological processes, or the production of essential materials, including the exploration, development, and mining of strategic and critical metals and minerals, and manufacture of newsprint.

(b) Terms and conditions; Presidential determinations

Such loans may be made without regard to the limitations of existing law and on such terms and conditions as the President deems necessary, except that-

(1) financial assistance may be extended only to the extent that it is not otherwise available on reasonable terms; and

(2) except during periods of national emergency declared by the Congress or the President, no such loan may be made unless the President determines that-

(A) the loan is for the expansion of capacity, the development of a technological process, or the production of materials essential to the national defense;

(B) without the loan, United States industry cannot reasonably be expected to provide the needed capacity, technological processes, or materials in a timely manner;

(C) the loan is the most cost-effective, expedient, and practical alternative method for meeting the need; and

(D) the combination of the United States national defense demand and foreseeable nondefense demand is not less than the output of domestic industrial capability, as determined by the President, including the output to be established through the loan.

(c) Identification of industrial resource shortfall

(1) Except as provided in paragraph (4), no loans may be made under this section, unless the industrial resource shortfall which such loan is intended to correct has been identified in the Budget of the United States, or amendments thereto, submitted to the Congress, accompanied by a statement from the President demonstrating that the budget submission is in accordance with the provisions of subsection (b)(2) of this section.

(2) Any such loan may be made only after 60 days have elapsed after such industrial resource shortfall has been identified pursuant to paragraph (1).

(3) If the making of any loan or loans to correct an industrial resource shortfall would cause the aggregate outstanding amount of all loans for such industrial resource shortfall to exceed $50,000,000, any such loan or loans may be made only if specifically authorized by law.

(4) The requirements of paragraphs (1), (2), and (3) may be waived-

(A) during periods of national emergency declared by the Congress or the President; and

(B) upon a determination by the President, on a nondelegable basis, that a specific guarantee is necessary to avert an industrial resource or critical technology shortfall that would severely impair national defense capability.

(Sept. 8, 1950, ch. 932, title III, §302, 64 Stat. 801 ; June 30, 1952, ch. 530, title I, §104, 66 Stat. 298 ; Pub. L. 93–155, title VIII, §807(b), Nov. 16, 1973, 87 Stat. 615 ; Pub. L. 96–294, title I, §104(c), June 30, 1980, 94 Stat. 618 ; Pub. L. 98–265, §§3(b), 4(b), Apr. 17, 1984, 98 Stat. 149 , 151; Pub. L. 102–558, title I, §121(b), Oct. 28, 1992, 106 Stat. 4204 .)

Amendments

1992-Subsec. (a). Pub. L. 102–558, §121(b)(1), substituted "for the procurement of industrial resources or a critical technology item for the national defense" for "for the procurement of materials or the performance of services for the national defense".

Subsec. (b)(2)(D). Pub. L. 102–558, §121(b)(2), amended subpar. (D) generally. Prior to amendment, subpar. (D) read as follows: "the United States national defense demand is equal to, or greater than, domestic industrial capability which the President reasonably determines to be available for national defense, including the output to be established through the loan."

Subsec. (c)(1). Pub. L. 102–558, §121(b)(3), substituted "Except as provided in paragraph (4), no loans may be made under this section" for "No such loan may be made under this section, except during periods of national emergency declared by the Congress or the President".

Subsec. (c)(3). Pub. L. 102–558, §121(b)(4), substituted "$50,000,000" for "$25,000,000".

Subsec. (c)(4). Pub. L. 102–558, §121(b)(5), added par. (4).

1984-Subsec. (a). Pub. L. 98–265, §3(b), designated existing provision as subsec. (a) and struck out provision that loans be made without regard to limitations of existing law on such terms and conditions as the President deems necessary, except that financial assistance be extended only to the extent not available on reasonable terms, and that with respect to loans in excess of $48,000,000, Congressional committees be notified and no disapproving resolution be adopted within a 60-day period of continuous session of Congress, with provision for determining continuity of Congressional session for the purpose of computing such 60-day period. See subsec. (b).

Subsec. (b). Pub. L. 98–265, §3(b)(2), added subsec. (b).

Subsec. (c). Pub. L. 98–265, §4(b), added subsec. (c).

1980-Pub. L. 96–294 substituted "$48,000,000" for "$25,000,000".

1973-Pub. L. 93–155 provided for notification of Congressional Committees with respect to certain proposed loans, Congressional resolution of disapproval, continuity of Congressional sessions, and computation of period.

1952-Act June 30, 1952, brought manufacture of newsprint within its provisions.

Effective Date of 1992 Amendment

Amendment by Pub. L. 102–558 deemed to have become effective Mar. 1, 1992, see section 304 of Pub. L. 102–558, set out as a note under section 2062 of this Appendix.

Effective Date of 1980 Amendment

Amendment by Pub. L. 96–294 effective June 30, 1980, see section 107 of Pub. L. 96–294, set out as a note under section 2062 of this Appendix.

Termination Date

Termination of section, see section 2166(a) of this Appendix.

Delegation of Functions

Functions of President under act Sept. 8, 1950 [section 2061 et seq. of this Appendix], relating to production, conservation, use, control, distribution, and allocation of energy, delegated to Secretary of Energy, see section 4 of Ex. Ord. No. 11790, June 25, 1974, 39 F.R. 23185, set out as a note under section 761 of Title 15, Commerce and Trade.

Obligations Entered Into Before November 16, 1973

Amendment by Pub. L. 93–155 not affecting the carrying out of any contract, loan, guarantee, commitment, or other obligation entered into prior to Nov. 16, 1973, see section 807(e) of Pub. L. 93–155, set out as a note under section 2307 of Title 10, Armed Forces.

Executive Order No. 10634

Ex. Ord. No. 10634, Aug. 31, 1955, 20 F.R. 6433, as amended by Ex. Ord. No. 10773, July 1, 1958, 23 F.R. 5061; Ex. Ord. No. 10782, Sept. 6, 1958, 23 F.R. 6971, which related to loans for facilities destroyed or damaged by major disaster, was revoked by section 5–106 of Ex. Ord. No. 12148, July 20, 1979, 44 F.R. 43243, set out as a note under section 5195 of Title 42, The Public Health and Welfare.

Cross References

Limitation on aggregate amount of loans, guarantees, etc., under this section, see section 2161 of this Appendix.

Section Referred to in Other Sections

This section is referred to in sections 2078, 2091, 2095, 2096, 2161 of this Appendix.