§ 16503. Sugar ethanol loan guarantee program

• (a) Funds may be provided for the cost (as defined in section 661a of title 2 ) of loan guarantees issued under title XIV 1 1 See References in Text note below. to carry out commercial demonstration projects for ethanol derived from sugarcane, bagasse, and other sugarcane byproducts.
• (b) The Secretary may issue loan guarantees under this section to projects to demonstrate commercially the feasibility and viability of producing ethanol using sugarcane, sugarcane bagasse, and other sugarcane byproducts as a feedstock.
• (c) An applicant for a loan guarantee under this section may provide assurances, satisfactory to the Secretary, that—
  • (1) the project design has been validated through the operation of a continuous process facility;
  • (2) the project has been subject to a full technical review;
  • (3) the project, with the loan guarantee, is economically viable; and
  • (4) there is a reasonable assurance of repayment of the guaranteed loan.
• (d)
  • (1) Except as provided in paragraph (2), a loan guarantee under this section—
    • (A) may be issued for up to 80 percent of the estimated cost of a project; but
    • (B) shall not exceed $50,000,000 for any 1 project.
  • (2)
    • (A) The Secretary may issue additional loan guarantees for a project to cover—
      • (i) up to 80 percent of the excess of actual project costs; but
      • (ii) not to exceed 15 percent of the amount of the original loan guarantee.
    • (B) Subject to subparagraph (A), the Secretary shall guarantee 100 percent of the principal and interest of a loan guarantee made under subparagraph (A).