---
kind: "section"
citation: "46 C.F.R. § 298.18"
title: "46"
number: "298.18"
heading: "Financing Shipyard Projects."
url: "https://uscodex.org/cfr/46/298.18"
---

# §298.18. Financing Shipyard Projects.

- (a) **Initial criteria.** We may issue Guarantees to finance a Shipyard Project at a General Shipyard Facility. We may approve such Guarantees after we consider whether the Guarantees will result in shipyard modernization and support increased productivity.
- (b) **Detailed statement.** You must provide a detailed statement, with the Guarantee application, which will provide the basis for our consideration.
- (c) **Required conditions.** We shall approve your application for loan guarantees under this section if we determine the following:
  - (1) The term for such Guarantees will not exceed the reasonable economic useful life of the collective assets which comprise this Shipyard Project;
  - (2) There is sufficient collateral to secure the Guarantee; and
  - (3) Your application will not prevent us from guaranteeing debt for a Shipyard Project that, in our sole opinion, will serve a more desirable use of appropriated funds. In making this determination, we will consider:
    - (i) The types of vessels which will be built by the shipyard,
    - (ii) The productivity increases which will be achieved,
    - (iii) The geographic location of the shipyard,
    - (iv) The long-term viability of the shipyard,
    - (v) The soundness of the financial transaction,
    - (vi) Any financial impact on other Title XI transactions, and
    - (vii) **The furtherance of the goals of the Shipbuilding Act.**

## Notes

### Authority

Authority: 46 U.S.C. chapter 537; 49 CFR 1.93.

### Source

Source: 65 FR 45152, July 20, 2000, unless otherwise noted.