article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Emergency Steel Loan Guarantee Program''. SEC. 2. FINDINGS. Congress finds that-- (1) the United States steel industry has been severely harmed by a record surge of more than 40,000,000 tons of steel imports into the United States in 1998, caused by the world financial crisis; (2) this surge in imports resulted in the loss of more than 10,000 steel worker jobs in 1998, and was the imminent cause of 3 bankruptcies by medium-sized steel companies, Acme Steel, Laclede Steel, and Geneva Steel; (3) the crisis also forced almost all United States steel companies into-- (A) reduced volume, lower prices, and financial losses; and (B) an inability to obtain credit for continued operations and reinvestment in facilities; (4) the crisis also has affected the willingness of private banks and investment institutions to make loans to the U.S. steel industry for continued operation and reinvestment in facilities; (5) these steel bankruptcies, job losses, and financial losses are also having serious negative effects on the tax base of cities, counties, and States, and on the essential health, education, and municipal services that these government entities provide to their citizens; and (6) a strong steel industry is necessary to the adequate defense preparedness of the United States in order to have sufficient steel available to build the ships, tanks, planes, and armaments necessary for the national defense. SEC. 3. DEFINITIONS. For purposes of this Act-- (1) the term ``Board'' means the Loan Guarantee Board established under section 5; (2) the term ``Program'' means the Emergency Steel Guaranteed Loan Program established under section 4; and (3) the term ``qualified steel company'' means any company that-- (A) is incorporated under the laws of any State; (B) is engaged in the production and manufacture of a product defined by the American Iron and Steel Institute as a basic steel mill product, including ingots, slab and billets, plates, flat-rolled steel, sections and structural products, bars, rail type products, pipe and tube, and wire rod; and (C) has experienced layoffs, production losses, or financial losses since the beginning of the steel import crisis, after January 1, 1998. SEC. 4. ESTABLISHMENT OF EMERGENCY STEEL GUARANTEED LOAN PROGRAM. There is established the Emergency Steel Guaranteed Loan Program, to be administered by the Board, the purpose of which is to provide loan guarantees to qualified steel companies in accordance with this Act. SEC. 5. LOAN GUARANTEE BOARD MEMBERSHIP. There is established a Loan Guarantee Board, which shall be composed of-- (1) the Secretary of Commerce, who shall serve as Chairman of the Board; (2) the Secretary of Labor; and (3) the Secretary of the Treasury. SEC. 6. LOAN GUARANTEE PROGRAM. (a) Authority.--The Program may guarantee loans provided to qualified steel companies by private banking and investment institutions in accordance with the procedures, rules, and regulations established by the Board. (b) Total Guarantee Limit.--The aggregate amount of loans guaranteed and outstanding at any one time under this Act may not exceed $1,000,000,000. (c) Individual Guarantee Limit.--The aggregate amount of loans guaranteed under this Act with respect to a single qualified steel company may not exceed $250,000,000. (d) Minimum Guarantee Amount.--No single loan in an amount that is less than $25,000,000 may be guaranteed under this Act, except that the Board may, in exceptional circumstances, guarantee smaller loans. (e) Timelines.--The Board shall approve or deny each application for a guarantee under this Act as soon as possible after receipt of such application. (f) Additional Costs.--For the additional cost of the loans guaranteed under this section, including the costs of modifying the loans as defined in section 502 of the Congressional Budget Act of 1974 (2 U.S.C. 661a), there is authorized to be appropriated $140,000,000, to remain available until expended. (g) Requirements for Loan Guarantees.--A loan guarantee may be issued under this Act upon application to the Board by a qualified steel company pursuant to an agreement to provide a loan to that qualified steel company by a private bank or investment company, if the Board determines that-- (1) credit is not otherwise available to that company under reasonable terms or conditions sufficient to meet its financing needs, as reflected in the financial and business plans of that company; (2) the prospective earning power of that company, together with the character and value of the security pledged, furnish reasonable assurance of repayment of the loan to be guaranteed in accordance with its terms; (3) the loan to be guaranteed bears interest at a rate determined by the Board to be reasonable, taking into account the current average yield on outstanding obligations of the United States with remaining periods of maturity comparable to the maturity of such loan; and (4) the company has agreed to an audit by the General Accounting Office, prior to the issuance of the loan guarantee and annually while any such guaranteed loan is outstanding. (h) Terms and Conditions of Loan Guarantees.-- (1) Loan duration.--All loans guaranteed under this Act shall be payable in full not later than December 31, 2005, and the terms and conditions of each such loan shall provide that the loan may not be amended, or any provision thereof waived, without the consent of the Board. (2) Loan security.--Any commitment to issue a loan guarantee under this Act shall contain such affirmative and negative covenants and other protective provisions that the Board determines are appropriate. The Board shall require security for the loans to be guaranteed under this Act at the time at which the commitment is made. (3) Fees.--A qualified steel company receiving a guarantee under this Act shall pay a fee in an amount equal to 0.5 percent of the outstanding principal balance of the guaranteed loan to the Department of the Treasury. (i) Reports to Congress.--The Secretary of Commerce shall submit to the Congress annually a full report of the activities of the Board under this Act during fiscal years 1999 and 2000, and annually thereafter, during such period as any loan guaranteed under this Act is outstanding. SEC. 7. SALARIES AND ADMINISTRATIVE EXPENSES. For necessary expenses to administer the Program, there is authorized to be appropriated to the Department of Commerce $5,000,000, to remain available until expended, which may be transferred to the Office of the Assistant Secretary for Trade Development of the International Trade Administration. SEC. 8. TERMINATION OF GUARANTEE AUTHORITY. The authority of the Board to make commitments to guarantee any loan under this Act shall terminate on December 31, 2001. SEC. 9. REGULATORY ACTION. The Board shall issue such final procedures, rules, and regulations as may be necessary to carry out this Act not later than 60 days after the date of enactment of this Act. SEC. 10. IRON ORE COMPANIES. (a) In General.--Subject to the requirements of this section, an iron ore company incorporated under the law of any State shall be treated as a qualified steel company for purposes of the Program. (b) Total Guarantee Limit for Iron Ore Companies.--Of the aggregate amount of loans authorized to be guaranteed and outstanding at any one time under section 6(b), not to exceed $30,000,000 of the amount of loans guaranteed and outstanding at any one time shall be loans with respect to iron ore companies. (c) Minimum Iron Ore Company Guarantee Amount.--Notwithstanding section 6(d), a single loan to an iron ore company in an amount of not less than $6,000,000 may be guaranteed under this section. SEC. 11. EMERGENCY DESIGNATION. The entire amount made available to carry out this Act-- (1) is designated by the Congress as an emergency requirement pursuant to section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901(b)(2)(A)); and (2) shall be available only to the extent that an official budget request that includes designation of the entire amount of the request as an emergency requirement (as defined in the Balanced Budget and Emergency Deficit Control Act of 1985) is transmitted by the President to the Congress.
summary: Emergency Steel Loan Guarantee Program - Establishes the Emergency Steel Loan Guarantee Program, and the Loan Guarantee Board to administer it, composed of the Secretaries of Commerce, the Treasury, and Labor. Authorizes such Program to guarantee loans by private banking and investment institutions to qualified steel companies, in accordance with Board-established procedures. Sets forth loan guarantee parameters. Authorizes appropriations. Treats an iron ore company as a qualified steel company for purposes of the Program.