PUBLIC LAW 102-554—OCT. 28, 1992 106 STAT. 4149 the credit needs of the operation (as specified in the plan contain^ in the application) a guarantee under section 309(h) for the repayment of 90 percent of the loan principal and interest and an interest subsidy payment in Ihe amount necessary to ensure that the applicant qualifies for such a loan but not more than the amount of interest assistance allowed by section 351; or
- (II) if during any of the first 4 years for which
assistance is provided under this section the Secretary determines that the applicant will not qualify for a loan described in subclause (I), an interest subsidy payment sufficient to ensure that the effective rate of interest payable by the applicant on the loan equals the rate of interest charged to low income, limited resource borrowers on insured operating loans made under this subtitle that are of comparable size and maturity; or "(iii) to make an insured loan under this subtitle to the applicant, in the amount specified in the plan contained in the application, at an interest rate that is no higher than the interest rate charged to regular borrowers and no lower than the interest rate charged to low income, limited resource borrowers under mis subtitle. "(3) LOANS OR GUARANTEES FOR NEW OR IMPROVED EQUIP- MENT. —The Secretary shall make a commitment to any applicant whose apphcation is approved under subsection (d) to provide the applicant with loans under this subtitle or loan guarantees under section 309(h) to finance the acquisition, improvement, or repair of equipment needed in the operation described in the application if the plan contained in the application provides for the commitment, to the extent that the applicant is unable to obtain sufficient credit fit)m commercial or cooperative lenders for such purposes at reasonable rates and terms (taking into consideration prevailing private and cooperative rates and terms in the community in which the operation is, or is to be, located, for loans for similar purposes and periods of time). '(4) PRIORITY IN PURCHASE OF INVENTORY EQUIPMENT; LOANS OR GUARANTEES FOR THE PURCHASES IN CERTAIN CASES. — During the commitment period, the Secretary shall— "(A) accord the applic€uit whose application is approved under subsection (d) priority for the purchase of equipment in the inventory of the Farmers Home Administration necessary for the success of the operation described in the application; and "(B) provide the applicant with loans under this subtitle or loan guarant^s under section 309(h) to fijiance the purchases if the plan contained in the application provides for the assistance, to the extent that the applictmt is unable to obtain sufficient credit fit>m commercial or cooperative lenders for such puipose at reasonable rates and terms (taking into consideration prevedling private and cooperative rates, and terms in the community in which the operation is, or is to be, located, for loans for similar purposes and periods of time).
�
