H. R. 5116—46 
sized manufacturers for the use or production of innovative tech-
nologies. 
‘‘(b) ELIGIBLE PROJECTS.—A loan guarantee may be made under 
the program only for a project that re-equips, expands, or estab-
lishes a manufacturing facility in the United States— 
‘‘(1) to use an innovative technology or an innovative 
process in manufacturing; 
‘‘(2) to manufacture an innovative technology product or 
an integral component of such a product; or 
‘‘(3) to commercialize an innovative product, process, or 
idea that was developed by research funded in whole or in 
part by a grant from the Federal government. 
‘‘(c) ELIGIBLE BORROWER.—A loan guarantee may be made 
under the program only for a borrower who is a small- or medium- 
sized manufacturer, as determined by the Secretary under the 
criteria established pursuant to subsection (l). 
‘‘(d) LIMITATION
ON AMOUNT.—A loan guarantee shall not 
exceed an amount equal to 80 percent of the obligation, as estimated 
at the time at which the loan guarantee is issued. 
‘‘(e) LIMITATIONS
ON LOAN GUARANTEE.—No loan guarantee 
shall be made unless the Secretary determines that— 
‘‘(1) there is a reasonable prospect of repayment of the 
principal and interest on the obligation by the borrower; 
‘‘(2) the amount of the obligation (when combined with 
amounts available to the borrower from other sources) is suffi-
cient to carry out the project; 
‘‘(3) the obligation is not subordinate to other financing; 
‘‘(4) the obligation bears interest at a rate that does not 
exceed a level that the Secretary determines appropriate, taking 
into account the prevailing rate of interest in the private sector 
for similar loans and risks; and 
‘‘(5) the term of an obligation requires full repayment over 
a period not to exceed the lesser of— 
‘‘(A) 30 years; or 
‘‘(B) 90 percent of the projected useful life, as deter-
mined by the Secretary, of the physical asset to be financed 
by the obligation. 
‘‘(f) DEFAULTS.— 
‘‘(1) PAYMENT BY SECRETARY.— 
‘‘(A) IN GENERAL.—If a borrower defaults (as defined 
in regulations promulgated by the Secretary and specified 
in the loan guarantee) on the obligation, the holder of 
the loan guarantee shall have the right to demand payment 
of the unpaid amount from the Secretary. 
‘‘(B) PAYMENT REQUIRED.—Within such period as may 
be specified in the loan guarantee or related agreements, 
the Secretary shall pay to the holder of the loan guarantee 
the unpaid interest on and unpaid principal of the obliga-
tion as to which the borrower has defaulted, unless the 
Secretary finds that there was no default by the borrower 
in the payment of interest or principal or that the default 
has been remedied. 
‘‘(C) FORBEARANCE.—Nothing in this subsection pre-
cludes any forbearance by the holder of the obligation for 
the benefit of the borrower which may be agreed upon 
by the parties to the obligation and approved by the Sec-
retary.
H. R. 5116—47 
‘‘(2) SUBROGATION.— 
‘‘(A) IN GENERAL.—If the Secretary makes a payment 
under paragraph (1), the Secretary shall be subrogated 
to the rights, as specified in the loan guarantee, of the 
recipient of the payment or related agreements including, 
if appropriate, the authority (notwithstanding any other 
provision of law)— 
‘‘(i) to complete, maintain, operate, lease, or other-
wise dispose of any property acquired pursuant to such 
loan guarantee or related agreement; or 
‘‘(ii) to permit the borrower, pursuant to an agree-
ment with the Secretary, to continue to pursue the 
purposes of the project if the Secretary determines 
that such an agreement is in the public interest. 
‘‘(B) SUPERIORITY OF RIGHTS.—The rights of the Sec-
retary, with respect to any property acquired pursuant 
to a loan guarantee or related agreements, shall be superior 
to the rights of any other person with respect to the prop-
erty. 
‘‘(3) NOTIFICATION.—If the borrower defaults on an obliga-
tion, the Secretary shall notify the Attorney General of the 
default. 
‘‘(g) TERMS
AND CONDITIONS.—A loan guarantee under this 
section shall include such detailed terms and conditions as the 
Secretary determines appropriate— 
‘‘(1) to protect the interests of the United States in the 
case of default; and 
‘‘(2) to have available all the patents and technology nec-
essary for any person selected, including the Secretary, to com-
plete and operate the project. 
‘‘(h) CONSULTATION.—In establishing the terms and conditions 
of a loan guarantee under this section, the Secretary shall consult 
with the Secretary of the Treasury. 
‘‘(i) FEES.— 
‘‘(1) IN GENERAL.—The Secretary shall charge and collect 
fees for loan guarantees in amounts the Secretary determines 
are sufficient to cover applicable administrative expenses. 
‘‘(2) AVAILABILITY.—Fees collected under this subsection 
shall— 
‘‘(A) be deposited by the Secretary into the Treasury 
of the United States; and 
‘‘(B) remain available until expended, subject to such 
other conditions as are contained in annual appropriations 
Acts. 
‘‘(3) LIMITATION.—In charging and collecting fees under 
paragraph (1), the Secretary shall take into consideration the 
amount of the obligation. 
‘‘(j) RECORDS.— 
‘‘(1) IN GENERAL.—With respect to a loan guarantee under 
this section, the borrower, the lender, and any other appropriate 
party shall keep such records and other pertinent documents 
as the Secretary shall prescribe by regulation, including such 
records as the Secretary may require to facilitate an effective 
audit. 
‘‘(2) ACCESS.—The Secretary and the Comptroller General 
of the United States, or their duly authorized representatives,
H. R. 5116—48 
shall have access to records and other pertinent documents 
for the purpose of conducting an audit. 
‘‘(k) FULL FAITH
AND CREDIT.—The full faith and credit of 
the United States is pledged to the payment of all loan guarantees 
issued under this section with respect to principal and interest. 
‘‘(l) REGULATIONS.—The Secretary shall issue final regulations 
before making any loan guarantees under the program. The regula-
tions shall include— 
‘‘(1) criteria that the Secretary shall use to determine eligi-
bility for loan guarantees under this section, including— 
‘‘(A) whether a borrower is a small- or medium-sized 
manufacturer; and 
‘‘(B) whether a borrower demonstrates that a market 
exists for the innovative technology product, or the integral 
component of such a product, to be manufactured, as evi-
denced by written statements of interest from potential 
purchasers; 
‘‘(2) criteria that the Secretary shall use to determine the 
amount of any fees charged under subsection (i), including 
criteria related to the amount of the obligation; 
‘‘(3) policies and procedures for selecting and monitoring 
lenders and loan performance; and 
‘‘(4) any other policies, procedures, or information necessary 
to implement this section. 
‘‘(m) AUDIT.— 
‘‘(1) ANNUAL INDEPENDENT AUDITS.—The Secretary shall 
enter into an arrangement with an independent auditor for 
annual evaluations of the program under this section. 
‘‘(2) COMPTROLLER
GENERAL
REVIEW.—The Comptroller 
General of the United States shall conduct a biennial review 
of the Secretary’s execution of the program under this section. 
‘‘(3) REPORT.—The results of the independent audit under 
paragraph (1) and the Comptroller General’s review under para-
graph (2) shall be provided directly to the Committee on Science 
and Technology of the House of Representatives and the Com-
mittee on Commerce, Science, and Transportation of the Senate. 
‘‘(n) REPORT TO CONGRESS.—Concurrent with the submission 
to Congress of the President’s annual budget request in each year 
after the date of enactment of the America COMPETES Reauthor-
ization Act of 2010, the Secretary shall transmit to the Committee 
on Science and Technology of the House of Representatives and 
the Committee on Commerce, Science, and Transportation of the 
Senate a report containing a summary of all activities carried 
out under this section. 
‘‘(o) COORDINATION AND NONDUPLICATION.—To the maximum 
extent practicable, the Secretary shall ensure that the activities 
carried out under this section are coordinated with, and do not 
duplicate the efforts of, other loan guarantee programs within the 
Federal Government. 
‘‘(p) MEP CENTERS.—The Secretary may use centers established 
under section 25 of the National Institute of Standards and Tech-
nology Act (15 U.S.C. 278k) to provide information about the pro-
gram established under this section and to conduct outreach to 
potential borrowers, as appropriate. 
‘‘(q) MINIMIZING RISK.—The Secretary shall promulgate regula-
tions and policies to carry out this section in accordance with 
Office of Management and Budget Circular No. A–129, entitled
H. R. 5116—49 
‘Policies for Federal Credit Programs and Non-Tax Receivables’, 
as in effect on the date of enactment of the America COMPETES 
Reauthorization Act of 2010. 
‘‘(r) SENSE OF CONGRESS.—It is the sense of Congress that 
no loan guarantee shall be made under this section unless the 
borrower agrees to use a federally-approved electronic employment 
eligibility verification system to verify the employment eligibility 
of— 
‘‘(1) all persons hired during the contract term by the 
borrower to perform employment duties within the United 
States; and 
‘‘(2) all persons assigned by the borrower to perform work 
within the United States on the project. 
‘‘(s) DEFINITIONS.—In this section: 
‘‘(1) COST.—The term ‘cost’ has the meaning given such 
term under section 502 of the Federal Credit Reform Act of 
1990 (2 U.S.C. 661a). 
‘‘(2) INNOVATIVE PROCESS.—The term ‘innovative process’ 
means a process that is significantly improved as compared 
to the process in general use in the commercial marketplace 
in the United States at the time the loan guarantee is issued. 
‘‘(3) INNOVATIVE TECHNOLOGY.—The term ‘innovative tech-
nology’ means a technology that is significantly improved as 
compared to the technology in general use in the commercial 
marketplace in the United States at the time the loan guarantee 
is issued. 
‘‘(4) LOAN GUARANTEE.—The term ‘loan guarantee’ has the 
meaning given such term in section 502 of the Federal Credit 
Reform Act of 1990 (2 U.S.C. 661a). The term includes a loan 
guarantee commitment (as defined in section 502 of such Act 
(2 U.S.C. 661a)). 
‘‘(5) OBLIGATION.—The term ‘obligation’ means the loan 
or other debt obligation that is guaranteed under this section. 
‘‘(6) PROGRAM.—The term ‘program’ means the loan guar-
antee program established in subsection (a). 
‘‘(t) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated $20,000,000 for each of fiscal years 2011 through 
2013 to provide the cost of loan guarantees under this section.’’. 
SEC. 603. REGIONAL INNOVATION PROGRAM. 
The Stevenson-Wydler Technology Innovation Act of 1980 (15 
U.S.C. 3701 et seq.), as amended by section 602, is further amended 
by adding at the end thereof the following: 
‘‘SEC. 27. REGIONAL INNOVATION PROGRAM. 
‘‘(a) ESTABLISHMENT.—The Secretary shall establish a regional 
innovation program to encourage and support the development of 
regional innovation strategies, including regional innovation clus-
ters and science and research parks. 
‘(b) CLUSTER GRANTS.— 
‘‘(1) IN GENERAL.—As part of the program established under 
subsection (a), the Secretary may award grants on a competitive 
basis to eligible recipients for activities relating to the formation 
and development of regional innovation clusters. 
‘‘(2) PERMISSIBLE ACTIVITIES.—Grants awarded under this 
subsection may be used for activities determined appropriate 
by the Secretary, including the following: 
‘‘(A) Feasibility studies.
H. R. 5116—50 
‘‘(B) Planning activities. 
‘‘(C) Technical assistance. 
‘‘(D) Developing or strengthening communication and 
collaboration between and among participants of a regional 
innovation cluster. 
‘‘(E) Attracting additional participants to a regional 
innovation cluster. 
‘‘(F) Facilitating market development of products and 
services developed by a regional innovation cluster, 
including through demonstration, deployment, technology 
transfer, and commercialization activities. 
‘‘(G) Developing relationships between a regional 
innovation cluster and entities or clusters in other regions. 
‘‘(H) Interacting with the public and State and local 
governments to meet the goals of the cluster. 
‘‘(3) ELIGIBLE RECIPIENT DEFINED.—In this subsection, the 
term ‘eligible recipient’ means— 
‘‘(A) a State; 
‘‘(B) an Indian tribe; 
‘‘(C) a city or other political subdivision of a State; 
‘‘(D) an entity that— 
‘‘(i) is a nonprofit organization, an institution of 
higher education, a public-private partnership, a 
science or research park, a Federal laboratory, or an 
economic development organization or similar entity; 
and 
‘‘(ii) has an application that is supported by a 
State or a political subdivision of a State; or 
‘‘(E) a consortium of any of the entities described in 
subparagraphs (A) through (D). 
‘‘(4) APPLICATION.— 
‘‘(A) IN GENERAL.—An eligible recipient shall submit 
an application to the Secretary at such time, in such 
manner, and containing such information and assurances 
as the Secretary may require. 
‘‘(B) COMPONENTS.—The application shall include, at 
a minimum, a description of the regional innovation cluster 
supported by the proposed activity, including a description 
of— 
‘‘(i) whether the regional innovation cluster is sup-
ported by the private sector, State and local govern-
ments, and other relevant stakeholders; 
‘‘(ii) how the existing participants in the regional 
innovation cluster will encourage and solicit participa-
tion by all types of entities that might benefit from 
participation, including newly formed entities and 
those rival existing participants; 
‘‘(iii) the extent to which the regional innovation 
cluster is likely to stimulate innovation and have a 
positive impact on regional economic growth and 
development; 
‘‘(iv) whether the participants in the regional 
innovation cluster have access to, or contribute to, 
a well-trained workforce; 
‘‘(v) whether the participants in the regional 
innovation cluster are capable of attracting additional 
funds from non-Federal sources; and
H. R. 5116—51 
‘‘(vi) the likelihood that the participants in the 
regional innovation cluster will be able to sustain 
activities once grant funds under this subsection have 
been expended. 
‘‘(C) SPECIAL CONSIDERATION.—The Secretary shall give 
special consideration to applications from regions that con-
tain communities negatively impacted by trade. 
‘‘(5) SPECIAL CONSIDERATION.—The Secretary shall give spe-
cial consideration to an eligible recipient who agrees to collabo-
rate with local workforce investment area boards. 
‘‘(6) COST SHARE.—The Secretary may not provide more 
than 50 percent of the total cost of any activity funded under 
this subsection. 
‘‘(7) USE AND APPLICATION OF RESEARCH AND INFORMATION 
PROGRAM.—To the maximum extent practicable, the Secretary 
shall ensure that activities funded under this subsection use 
and apply any relevant research, best practices, and metrics 
developed under the program established in subsection (c). 
‘‘(c) SCIENCE AND RESEARCH PARK DEVELOPMENT GRANTS.— 
‘‘(1) IN GENERAL.—As part of the program established under 
subsection (a), the Secretary may award grants for the develop-
ment of feasibility studies and plans for the construction of 
new science parks or the renovation or expansion of existing 
science parks. 
‘‘(2) LIMITATION ON AMOUNT OF GRANTS.—The amount of 
a grant awarded under this subsection may not exceed 
$750,000. 
‘‘(3) AWARD.— 
‘‘(A) COMPETITION
REQUIRED.—The Secretary shall 
award grants under this subsection pursuant to a full 
and open competition. 
‘‘(B) 
GEOGRAPHIC
DISPERSION.—In 
conducting 
a 
competitive process, the Secretary shall consider the need 
to avoid undue geographic concentration among any one 
category of States based on their predominant rural or 
urban character as indicated by population density. 
‘‘(C) SELECTION CRITERIA.—The Secretary shall publish 
the criteria to be utilized in any competition for the selec-
tion of recipients of grants under this subsection, which 
shall include requirements relating to the— 
‘‘(i) effect the science park will have on regional 
economic growth and development; 
‘‘(ii) number of jobs to be created at the science 
park and the surrounding regional community each 
year during its first 3 years; 
‘‘(iii) funding to be required to construct, renovate 
or expand the science park during its first 3 years; 
‘‘(iv) amount and type of financing and access to 
capital available to the applicant; 
‘‘(v) types of businesses and research entities 
expected in the science park and surrounding regional 
community; 
‘‘(vi) letters of intent by businesses and research 
entities to locate in the science park; 
‘‘(vii) capability to attract a well trained workforce 
to the science park;
H. R. 5116—52 
‘‘(viii) the management of the science park during 
its first 5 years; 
‘‘(ix) expected financial risks in the construction 
and operation of the science park and the risk mitiga-
tion strategy; 
‘‘(x) physical infrastructure available to the science 
park, including roads, utilities, and telecommuni-
cations; 
‘‘(xi) utilization of energy-efficient building tech-
nology including nationally recognized green building 
design practices, renewable energy, cogeneration, and 
other methods that increase energy efficiency and con-
servation; 
‘‘(xii) consideration to the transformation of mili-
tary bases affected by the base realignment and closure 
process or the redevelopment of existing buildings, 
structures, or brownfield sites that are abandoned, 
idled, or underused into single or multiple building 
facilities for science and technology companies and 
institutions; 
‘‘(xiii) ability to collaborate with other science 
parks throughout the world; 
‘‘(xiv) consideration of sustainable development 
practices and the quality of life at the science park; 
and 
‘‘(xv) other such criteria as the Secretary shall 
prescribe. 
‘‘(4) ALLOCATION
CONSTRAINTS.—The Secretary may not 
allocate less than one-third of the total grant funding allocated 
under this section for any fiscal year to grants under subsection 
(b) or this subsection without written notification to the Senate 
Committee on Commerce, Science, and Transportation and the 
House of Representatives Committees on Science and Tech-
nology and on Energy and Commerce. 
‘‘(d) LOAN GUARANTEES FOR SCIENCE PARK INFRASTRUCTURE.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), the Secretary 
may guarantee up to 80 percent of the loan amount for projects 
for the construction or expansion, including renovation and 
modernization, of science park infrastructure. 
‘‘(2) LIMITATIONS ON GUARANTEE AMOUNTS.—The maximum 
amount of loan principal guaranteed under this subsection may 
not exceed— 
‘‘(A) $50,000,000 with respect to any single project; 
and 
‘‘(B) $300,000,000 with respect to all projects. 
‘‘(3) SELECTION OF GUARANTEE RECIPIENTS.—The Secretary 
shall select recipients of loan guarantees under this subsection 
based upon the ability of the recipient to collateralize the 
loan amount through bonds, equity, property, and such other 
things of values as the Secretary shall deem necessary. Recipi-
ents of grants under subsection (c) are not eligible for a loan 
guarantee during the period of the grant. To the extent that 
the Secretary determines it to be feasible, the Secretary may 
select recipients of guarantee assistance in accord with a 
competitive process that takes into account the factors set 
out in subsection (c)(3)(C) of this section.
H. R. 5116—53 
‘‘(4) TERMS AND CONDITIONS FOR LOAN GUARANTEES.—The 
loans guaranteed under this subsection shall be subject to 
such terms and conditions as the Secretary may prescribe, 
except that— 
‘‘(A) the final maturity of such loans made or guaran-
teed may not exceed the lesser of— 
‘‘(i) 30 years; or 
‘‘(ii) 90 percent of the useful life of any physical 
asset to be financed by the loan; 
‘‘(B) a loan guaranteed under this subsection may not 
be subordinated to another debt contracted by the borrower 
or to any other claims against the borrowers in the case 
of default; 
‘‘(C) a loan may not be guaranteed under this sub-
section unless the Secretary determines that the lender 
is responsible and that provision is made for servicing 
the loan on reasonable terms and in a manner that ade-
quately protects the financial interest of the United States; 
‘‘(D) a loan may not be guaranteed under this sub-
section if— 
‘‘(i) the income from the loan is excluded from 
gross income for purposes of chapter 1 of the Internal 
Revenue Code of 1986; or 
‘‘(ii) the guarantee provides significant collateral 
or security, as determined by the Secretary in coordina-
tion with the Secretary of the Treasury, for other 
obligations the income from which is so excluded; 
‘‘(E) any guarantee provided under this subsection shall 
be conclusive evidence that— 
‘‘(i) the guarantee has been properly obtained; 
‘‘(ii) the underlying loan qualified for the guar-
antee; and 
‘‘(iii) absent fraud or material misrepresentation 
by the holder, the guarantee is presumed to be valid, 
legal, and enforceable; 
‘‘(F) the Secretary may not extend credit assistance 
unless the Secretary has determined that there is a reason-
able assurance of repayment; and 
‘‘(G) new loan guarantees may not be committed except 
to the extent that appropriations of budget authority to 
cover their costs are made in advance, as required under 
section 504 of the Federal Credit Reform Act of 1990 (2 
U.S.C. 661c). 
‘‘(5) PAYMENT OF LOSSES.— 
‘‘(A) IN GENERAL.—If, as a result of a default by a 
borrower under a loan guaranteed under this subsection, 
after the holder has made such further collection efforts 
and instituted such enforcement proceedings as the Sec-
retary may require, the Secretary determines that the 
holder has suffered a loss, the Secretary shall pay to the 
holder the percentage of the loss specified in the guarantee 
contract. Upon making any such payment, the Secretary 
shall be subrogated to all the rights of the recipient of 
the payment. The Secretary shall be entitled to recover 
from the borrower the amount of any payments made 
pursuant to any guarantee entered into under this section.
H. R. 5116—54 
‘‘(B) ENFORCEMENT OF RIGHTS.—The Attorney General 
shall take such action as may be appropriate to enforce 
any right accruing to the United States as a result of 
the issuance of any guarantee under this section. 
‘‘(C) FORBEARANCE.—Nothing in this section may be 
construed to preclude any forbearance for the benefit of 
the borrower which may be agreed upon by the parties 
to the guaranteed loan and approved by the Secretary, 
if budget authority for any resulting subsidy costs (as 
defined in section 502(5) of the Federal Credit Reform 
Act of 1990) is available. 
‘‘(6) EVALUATION OF CREDIT RISK.— 
‘‘(A) The Secretary shall periodically assess the credit 
risk of new and existing direct loans or guaranteed loans. 
‘‘(B) Not later than 2 years after the date of the enact-
ment of the America COMPETES Reauthorization Act of 
2010, the Comptroller General of the United States shall— 
‘‘(i) conduct a review of the subsidy estimates for 
the loan guarantees under this section; and 
‘‘(ii) submit to Congress a report on the review 
conducted under this paragraph. 
‘‘(7) TERMINATION.—A loan may not be guaranteed under 
this section after September 30, 2013. 
‘‘(8) 
AUTHORIZATION
OF
APPROPRIATIONS.—There 
are 
authorized to be appropriated $7,000,000 for each of fiscal 
years 2011 through 2013 for the cost (as defined in section 
502(5) of the Federal Credit Reform Act of 1990) of guaranteeing 
$300,000,000 in loans under this section, such sums to remain 
available until expended. 
‘‘(e) REGIONAL INNOVATION RESEARCH AND INFORMATION PRO-
GRAM.— 
‘‘(1) IN GENERAL.—As part of the program established under 
subsection (a), the Secretary shall establish a regional innova-
tion research and information program— 
‘‘(A) to gather, analyze, and disseminate information 
on best practices for regional innovation strategies 
(including regional innovation clusters), including informa-
tion relating to how innovation, productivity, and economic 
development can be maximized through such strategies; 
‘‘(B) to provide technical assistance, including through 
the development of technical assistance guides, for the 
development and implementation of regional innovation 
strategies (including regional innovation clusters); 
‘‘(C) to support the development of relevant metrics 
and measurement standards to evaluate regional innova-
tion strategies (including regional innovation clusters), 
including the extent to which such strategies stimulate 
innovation, productivity, and economic development; and 
‘‘(D) to collect and make available data on regional 
innovation cluster activity in the United States, including 
data on— 
‘‘(i) the size, specialization, and competitiveness 
of regional innovation clusters; 
‘‘(ii) the regional domestic product contribution, 
total jobs and earnings by key occupations, establish-
ment size, nature of specialization, patents, Federal