Sec. 6. Loans and loan guarantees to domestic manufacturers under Defense Production Act
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The President, acting through the Secretary of Defense, may establish and carry out a program to make or guarantee loans under title III of the Defense Production Act ( 50 U.S.C. App. 2091 et seq.) to eligible entities in accordance with this section. The Secretary of Defense shall establish eligibility requirements for purposes of the loans or loan guarantees under this section in order to provide assistance to any entity that— is a manufacturer in the United States; is a firm certified as eligible to apply for adjustment assistance under section 251(c) of the Trade Act of 1974 ( 19 U.S.C. 2341(c) ); and meets one of the following criteria:
The entity mines, produces, or manufactures a nonavailable item. The entity is the last remaining manufacturer of an item in the United States, as determined by the Secretary of Defense, and can prove hardship because of foreign competition. The entity is the last remaining manufacturer of an item in the United States and that item is considered to be vital for national security purposes by the Department of Defense or another department or agency of the United States. The amount of any loan made or guaranteed under this section may not exceed $5,000,000 per entity.
Each eligible entity receiving a loan or loan guarantee under this section shall use the funds of the loan made or guaranteed only for one or more of the following purposes: Increasing its ability to compete for a Government contract for a nonavailable item. Increasing its ability to produce a nonavailable item. Increasing its capacity to produce items that are vital to national security. To receive a loan or loan guarantee under this section, an eligible entity shall submit an application to the Secretary of Defense at such time, in such manner, and containing such information as the Secretary may require.
At a minimum, the application shall include a statement regarding the number of direct full-time domestic jobs expected to be created or retained as a result of the loan made or guaranteed, but such statement shall not be the sole factor used in determining the award of the loan or loan guarantee. The Secretary of Defense each year shall evaluate recipients of loans or loan guarantees under this section to determine the proper allocation of loan funds that are loaned or guaranteed.
In this section, the term nonavailable item means any of the following: An article, material, or supply— that has been determined by a Federal agency, pursuant to chapter 83 of title 41, United States Code (popularly referred to as the Buy American Act), to not be mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantities of a satisfactory quality; or that is listed on the list of nonavailable articles under subpart 25.104 of the Federal Acquisition Regulation.
An article or item— that is described in section 4862 of title 10, United States Code, as transferred and redesignated by section 1870(c)(2) of the William M.
(Mac)Thornberry National Defense Authorization Act for Fiscal Year 2021 ( Public Law 116–283 ), and grown, reprocessed, reused, or produced in the United States; and satisfactory quality and sufficient quantity of which cannot be procured as and when needed at United States market prices, as determined by the Secretary of Defense or the Secretary of the military department concerned, pursuant to section 4862(c) of such title. Compliant specialty metal— as defined in section 4862 of title 10, United States Code, as transferred and redesignated by section 1870(c)(2) of the William M.
(Mac)Thornberry National Defense Authorization Act for Fiscal Year 2021 ( Public Law 116–283 ); and satisfactory quality and sufficient quantity of which, and in the required form, cannot be procured as and when needed, as determined by the Secretary of Defense or the Secretary of the military department concerned, pursuant to such section 4862(b). An item listed in subsection
(a)of section 4864 of title 10, United States Code, as transferred and redesignated by section 1870(c)(2) of the William M.
(Mac)Thornberry National Defense Authorization Act for Fiscal Year 2021 ( Public Law 116–283 ), if the Secretary determines, under subsection (d)(4) of such section, that satisfactory quality of the item manufactured by an entity that is part of the national technology and industrial base (as defined in section 4801(1) of such title, as transferred and redesignated by section 1866(c) of the William M.
(Mac)Thornberry National Defense Authorization Act for Fiscal Year 2021 ( Public Law 116–283 )) is not available.
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Sec. 6
Loans and loan guarantees to domestic manufacturers under Defense Production Act
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