Reading Room Document

Authority of the Secretary of Commerce to Guarantee Payment of Interest on Loans Made to Private Borrowers by Private Lending Institutions

This document discusses the authority granted to the Secretary of Commerce to issue guarantees of payment of fixed asset and working capital loans made to private borrowers by private lending institutions. The conclusion reached in the document is that the Secretary of Commerce has the power to guarantee not only 90 percent of the principal of fixed asset and working capital loans but also 90 percent of the interest payable on such loans. The questions presented for review include whether the respective authorizing provisions of the statute permit the Secretary to include payment of interest on the loans within his assurances, and whether the Secretary of Commerce has the authority to guarantee the payment of interest on loans.

May 30, 1979