42 U.S.C. § 16503 — Sugar ethanol loan guarantee program

(a) In general: Congress may provide money to cover the cost of loan guarantees issued under title XIV, to carry out commercial demonstration projects for ethanol made from sugarcane, bagasse, and other sugarcane byproducts. (b) Demonstration projects: The Secretary may issue loan guarantees under this section for projects that demonstrate, on a commercial scale, whether making ethanol from sugarcane, sugarcane bagasse, and other sugarcane byproducts is feasible and workable. (c) Requirements: An applicant may give the Secretary assurances that: (1) the project's design has already been proven in a continuously operating facility; (2) the project has gone through a full technical review; (3) the project, with the loan guarantee, is economically viable; and (4) there is a reasonable assurance the guaranteed loan will be repaid. (d) Limitations: (1) Maximum guarantee: Unless (2) applies, a loan guarantee under this section: (A) may cover up to 80 percent of the project's estimated cost; but (B) cannot exceed $50,000,000 for any one project. (2) Additional guarantees: (A) In general: The Secretary may issue further guarantees for a project to cover: (i) up to 80 percent of extra, actual project costs; but (ii) no more than 15 percent of the original loan guarantee amount. (B) Principal and interest: Subject to (A), the Secretary must guarantee 100 percent of the principal and interest on a guarantee made under (A).