as a condition of any loan guarantee under sub-
section (a), that— 
‘‘(A) any disbursement of a loan amount 
be fully protected by a secured interest in the 
proceeds of a sale or other assignment of the li-
cense involved; and 
‘‘(B) the loan agreement contain specific 
measures by which, in the case of a default by 
the borrower, the lender may require the bor-
rower to sell or otherwise assign the license. 
‘‘(e) GENERAL
APPLICABILITY; WAIVER
EXCEP-
TION.—Loan guarantees under this section shall be sub-
ject to all otherwise applicable provisions of this Act, ex-
cept that the Administrator may waive any limitation on 
the amount of an individual loan guarantee or on the total 
amount of loan guarantees to a single borrower. 
‘‘(f) DEFINITIONS.—As used in this section— 
‘‘(1) the term ‘qualified telecommunications 
borrower’ means a small business concern that, as 
determined by the Administrator, has, in addition to 
the other requirements of this Act, a level of special-
ized telecommunications expertise (including tech-
nical knowledge, business skill, and management ex-
perience) that is appropriate for the purpose for 
which the loan or guarantee involved is made; and
‘‘(2) the term ‘Administrator’ means the Ad-
ministrator, acting through the Associate Adminis-
trator for Telecommunications Finance. 
‘‘(g) COLLECTION
OF DATA.—The Administrator 
shall collect data with respect to the operation of the pro-
gram under this section. The data so collected— 
‘‘(1) shall be accumulated on a calendar year 
basis; 
‘‘(2) shall be maintained in an electronic data-
base; 
‘‘(3) shall include information on the ethnicity, 
race, and sex of all applicants, whether the applica-
tions involved are approved, denied, withdrawn, or 
otherwise disposed of; and 
‘‘(4) shall include other information that, as de-
termined by the Administrator, is relevant to the 
disposition of applications. 
‘‘(h) REPORT.—Not later than December 31 of each 
year, the Administrator shall submit to the Congress a re-
port, with respect to the preceding calendar year, of the 
status of the program under this section. The report shall 
include— 
‘‘(1) a statistical analysis (without personal 
identifying information) of the diversity characteris-
tics of applicants and borrowers under the program; 
and 
‘‘(2) a probability analysis with respect to the 
diversity of applicants who receive loans under the 
program.’’. 
SEC. 4. TELECOMMUNICATIONS LOAN GUARANTEE FUND. 
(a) IN GENERAL.—Title VII of the Communications 
Act of 1934 is amended by inserting after section 714 (42 
U.S.C. 614) the following new section: 
‘‘SEC. 
715. 
TELECOMMUNICATIONS 
LOAN 
GUARANTEE 
FUND. 
‘‘(a) ESTABLISHMENT.— 
‘‘(1) IN GENERAL.—There is hereby established 
the Telecommunications Loan Guarantee Fund 
(hereafter in this section referred to as the ‘Fund’) 
in the Department of the Treasury under the control 
of the Secretary of the Treasury (hereafter in this 
section referred to as the ‘Secretary’). 
‘‘(2) INITIAL CAPITALIZATION OF FUND.—The 
first $10,000,000,000 of proceeds received from the 
auction of spectrum licenses by the Federal Commu-
nications Commission after the date of the enact-
ment of this section shall be deposited in the Fund 
and shall constitute the capitalization of the Fund. 
‘‘(b) MAINTENANCE OF FUND.—
‘‘(1) IN GENERAL.—Amounts in the Fund shall 
be deposited by the Secretary in depositaries des-
ignated by the Secretary which have also been des-
ignated by the Telecommunications Finance Office 
of the Small Business Administration as certified 
telecommunications lenders. 
‘‘(2) INTEREST.—Interest paid by depositaries 
on amounts deposited in accordance with paragraph 
(1) shall be deposited in the Fund and be available 
for the purposes of the Fund. 
‘‘(c) PURPOSE OF FUND.—Amounts in the Fund 
shall be available to meet any obligation of the Small Busi-
ness Administration arising under a loan guarantee issued 
by the Telecommunications Finance Office of the Small 
Business Administration in connection with a loan under 
section 38(a)(2) or section 39(a) of the Small Business 
Act.’’. 
SEC. 5. PARTICIPATION IN SPECTRUM AUCTIONS. 
Section 309(j)(5) of the Communications Act of 1934 
(47 U.S.C. 309(j)(5)) is amended— 
(1) by striking ‘‘No person’’ and inserting the 
following: 
‘‘(A) IN GENERAL.—No person’’; and 
(2) by adding at the end the following:
‘‘(B) QUALIFIED
TELECOMMUNICATIONS 
BORROWERS.—With respect to any person that 
meets the qualification requirements of this 
paragraph and that is a qualified telecommuni-
cations borrower under section 38 or 39 of the 
Small Business Act, the Commission shall ac-
cept, in lieu of any upfront payment or earnest 
money deposit required by Commission regula-
tion, a letter of credit provided to such bor-
rower under such section that equals or exceeds 
the amount of such required payment or de-
posit. In any competitive bidding conducted 
under this subsection in which the Commission 
identifies any such qualified telecommunications 
borrower as the high bidder at the time of de-
claring that the bidding has closed, the Com-
mission shall notify the Administrator of the 
Small Business Administration of the identity 
of such bidder, the amount of the high bid, and 
the total amount required to be deposited with 
the Commission to qualify for the award of the 
license under Commission regulations. In the 
case of a qualified telecommunications borrower 
under section 38, the amount of such deposit
may be satisfied by debiting the loan account of 
the borrower at the Treasury.’’. 
Æ