I 118th CONGRESS 1st Session H. R. 5515 IN THE HOUSE OF REPRESENTATIVES September 14, 2023 Mr. Stewart introduced the following bill; which was referred to the Permanent Select Committee on Intelligence A BILL To authorize the Director of the National Geospatial-Intelligence Agency to issue direct loans to certain small businesses, and for other purposes.

1. Short title This Act may be cited as the Commercial Geostationary Remote Sensing Act of 2023 . 2. Authority for Director of the National Geospatial-Intelligence Agency to issue direct loans to certain small businesses (a) Purpose The purpose of this Act is to improve the opportunity of small businesses to participate in the satellite imaging capabilities that may be used for national security purposes, including the acquisition of geospatial intelligence in furtherance of the national security of the United States. (b) Authority To issue direct loans (1) In general Subject to the Federal Credit Reform Act of 1990 ( 2 U.S.C. 661 et seq. ), the Director of the National Geospatial-Intelligence Agency may issue a direct loan under this Act to an eligible entity for the purpose of financing the covered costs of an eligible project of the eligible entity. (2) Maximum amount of direct loans authorized The aggregate principal amount of direct loans issued under this Act, including all capitalized interest, may not exceed $2,500,000,000. (c) Applications (1) In general To receive a direct loan under this Act, an eligible entity shall submit to the Director an application therefor at such time, in such manner, and containing such information as the Director may require. (2) Demonstration of prospects of repayment An application for a direct loan submitted under paragraph (1) shall include information demonstrating that the applicant has a reasonable ability to repay the loan without using the proceeds of sales to the Federal Government, in accordance with subsection (e)(2)(B). (3) Complete application (A) Timing on notification as to completeness Not later than 30 business days after receiving an application pursuant to paragraph (1), the Director shall notify the applicant as to whether the application received constitutes a complete application. (B) Submission date for a complete application Except as provided in subparagraph (D), a complete application shall be treated as submitted on the date originally submitted to the Director. (C) Notification of incompleteness If the Director determines that an application submitted pursuant to paragraph (1) is incomplete, the Director shall notify the applicant and provide for a reasonable opportunity, as determined by the Director, for the applicant to submit the additional information necessary to complete the application. (D) Submission date for a previously incomplete application In a case in which an application is completed pursuant to subparagraph (C), the completed application shall be treated as submitted on the date on which the additional information necessary to complete the application is submitted to the Director pursuant to such subparagraph. (4) Notice to applicants Not later than 180 days after the date on which the Director receives from an eligible entity a complete application under this subsection, the Director shall provide to the eligible entity written notice— (A) approving the application; or (B) denying the application and providing guidance on why the application was so denied. (5) Solicitations Not later than 1 year after the date of the enactment of this Act, the Director shall solicit applications under this subsection. (d) Creditworthiness (1) In general No direct loan for an eligible project may be issued to an eligible entity under this Act unless the Director determines that— (A) the project has the potential to enable the National Geospatial-Intelligence Agency to meet mission-critical needs of the Agency; (B) the eligible entity is creditworthy; and (C) there is a reasonable assurance of repayment of the principal of, and any interest on, the proposed direct loan by the eligible entity without the eligible entity using the proceeds of sales to the Federal Government, in accordance with subsection (e)(2)(B). (2) Considerations In making the determinations under paragraph (1), the Director shall take into consideration relevant factors, including the following: (A) The terms, conditions, financial structure, and security features of the proposed direct loan. (B) The dedicated revenue sources proposed to secure or fund the repayment of the proposed direct loan. (C) The financial assumptions upon which the proposed eligible project is based. (D) The financial soundness and credit history of the eligible entity. (e) Direct loans (1) Agreements (A) In general Subject to paragraph (2), the Director may enter into an agreement with an eligible entity the application of which is approved pursuant to subsection (c)(4)(A) to issue a direct loan to such eligible entity for the purpose of financing the covered costs of the eligible project specified in such application. (B) Credit subsidy fee Prior to entering into an agreement under this subsection with respect to a proposed direct loan, the Director— (i) in consultation with the Director of the Office of Management and Budget, shall determine the cost (as defined in section 502 of the Federal Credit Reform Act of 1990 ( 2 U.S.C. 661a )) to the Federal Government of issuing the proposed direct loan; and (ii) shall charge and collect from the eligible entity, as a credit subsidy fee, a payment equal to the amount determined under clause (i) to cover the cost of the proposed direct loan. (2) Terms and limitations (A) In general A direct loan issued under this Act shall be subject to such terms and conditions, and contain such covenants, representations, warranties, and requirements, including requirements for audits, as the Director determines appropriate. (B) Repayment No direct loan issued under this Act, including any part of the principal of, or interest on, such a direct loan, may be repaid with the proceeds of a sale to the Federal Government. (C) Interest rate The interest rate on a direct loan issued under this Act shall be not less than the average market yield on outstanding marketable United States Treasury securities having maturities comparable to the maturity of the direct loan on the date of execution of the loan agreement. (D) Maturity date The final maturity date of a direct loan issued under this Act shall be the earlier of— (i) the date that is 25 years after the date of substantial completion of the relevant project; or (ii) if the useful life of the project, as determined by the Director, is less than 35 years, the end of the useful life of the project. (E) Nonsubordination A direct loan made under this Act shall not be subordinate to any other financing in the event of bankruptcy, insolvency, or liquidation of the obligor. (F) Administrative expenses In addition to the charging and collection of credit subsidy fees under paragraph (1)(B), the Director may charge, collect, and spend fees at a level sufficient to cover all or a portion of the expense of administering this section. Such administrative expenses may include the costs of services obtained or retained pursuant to subsection (f) with respect to the administration of this section or a particular direct loan issued under this section. (3) Repayment (A) In general The term of any direct loan obligation under this section shall require full repayment of the principal of, and any interest on, the direct loan by not later than the maturity date set forth by paragraph (2)(D) with respect to that direct loan. (B) Commencement Scheduled loan repayments of the principal of, and any interest on, a direct loan issued under this section shall commence by not later than— (i) the date that is 4 years after the date of substantial completion of the relevant project; or (ii) the date that is 8 years after the disbursement date of such direct loan. (C) Capitalized interest Interest on the outstanding principal of a direct loan issued under this section shall accrue during the period before the first scheduled repayment date under the repayment schedule for the loan and shall be amortized for payment over the remaining term of the loan. (f) Assistance services In carrying out this section, the Director may— (1) retain the services of persons, including counsel and consultants, with expertise in such fields as the Director considers necessary or helpful for purposes of this section; and (2) enter into contracts, including contracts for services authorized by section 3109 of title 5, United States Code. (g) Report to Congress (1) Submission Not later than 3 years after the date of the enactment of this Act, the Director shall submit to the congressional intelligence committees a report summarizing the projects for which the Director has issued direct loans under this section. (2) Matters The report under paragraph (1) shall include a description of the following: (A) The applications received for direct loans under this section. (B) The projects selected for direct loans under this section, including a description of the projects and the basis for the selection of those projects with respect to the requirements of this section. (C) The amount of the direct loan provided for each project selected under this section, respectively. (D) The financial performance of each project selected under this section, including an evaluation of whether the purpose under subsection (a) is being furthered by the project. (E) The benefits and effects of the implementation of this section, including the benefit to national security and other public benefits provided by the projects selected under this Act. (h) Funding (1) Use of funds Obligations incurred by the Director under this Act shall be subject to the availability of funds provided in advance specifically for the purpose of direct loans authorized under this Act. Such loans are subject to the requirements of the Federal Credit Reform Act of 1990 ( 2 U.S.C. 661 et seq. ). (2) Administrative expenses Administrative expense fees collected pursuant to subsection (e)(2)(F) shall be deposited into the appropriation account for administrative expenses of the direct loan program under this Act and shall be— (A) in addition to the amount of funds appropriated to be expended for administrative expenses; and (B) available until expended for administrative expenses, including ongoing expenses, of the direct loan program under this section. (3) Credit subsidy fees Credit subsidy fees collected pursuant to subsection (e)(1)(B)(ii) shall be deposited into the financing account for the direct loan program established pursuant to the Federal Credit Reform Act of 1990 ( 2 U.S.C. 661 et seq. ). (i) Termination The authority to issue new direct loans under this section shall terminate on the date that is 5 years after the date of the enactment of this Act. (j) Definitions In this section, except as otherwise provided: (1) Congressional intelligence committees The term congressional intelligence committees has the meaning given that term in section 3 of the National Security Act of 1947 ( 50 U.S.C. 3003 ). (2) Covered costs The term covered costs means, with respect to an eligible project— (A) the cost of— (i) startup-phase activities, including planning, feasibility analysis (including any related analysis necessary to carry out an eligible project), revenue forecasting, environmental review, permitting, preliminary engineering and design work, and other preconstruction activities; (ii) satellites, satellite launches, and related expenses; (iii) the acquisition and improvement of real property or an interest in real property; (iv) the acquisition or manufacturing of equipment and components of such equipment; and (v) capitalized interest necessary to meet market requirements, reasonably required reserve funds, cost contingencies, capital issuance expenses, and other carrying costs during construction; and (B) any other cost with respect to the project that the Director determines the financing of which is necessary to promote participation by a small business in satellite imaging capabilities that can be used for national security purposes, including the acquisition of geospatial intelligence in furtherance of the national security of the United States. (3) Director The term Director means the Director of the National Geospatial-Intelligence Agency. (4) Direct loan The term direct loan means a disbursement of funds by the Government to a non-Federal borrower under a contract that requires the repayment of such funds with or without interest. The term includes the purchase of, or participation in, a loan made by another lender and financing arrangements that defer payment for more than 90 days, including the sale of a Government asset on credit terms. The term does not include the acquisition of a federally guaranteed loan in satisfaction of default claims. (5) Eligible entity The term eligible entity means a small business concern (as defined under section 3 of the Small Business Act ( 15 U.S.C. 632 )) that produces or supplies— (A) a technology listed in the most up-to-date version of the list of critical and emerging technologies published by the White House or the integrated priority list published by the Administrator of the Defense Technical Information Center; or (B) any other technology that the President determines is necessary to the national security of the United States. (6) Eligible project The term eligible project means a project that uses geostationary orbit satellites to acquire immediate and continuous imagery of the Earth. (7) Obligor The term obligor means an eligible entity that is primarily liable for payment of the principal of, and any interest on, a direct loan made under this section. (8) Substantial completion The term substantial completion means, with respect to an eligible project, the date on which a project is considered by the Director to achieve full operational capability.